DAX Index Retreat As Phase One Deal Enthusiasm Fades Away
Dax index trades 0.17% lower at 13,409 as enthusiasm from the signing of the phase one trade deal fades away.
On the economic data, the Germany Consumer Price Index (month over month) came in at 0.5% in line with estimates in December, while the yearly CPI reading came in 1.5% also in line with expectations. The Harmonized Index of Consumer Prices registered in at 0.6%.
The German BDI industry association now forecast economic growth at 0.5% this year mostly due to the recession in the manufacturing sector.
Yesterday reported that the real GDP growth came in at 0.6% in line with forecasts, but in the weakest rate the last six years.
Dax index trades lower for the second consecutive day as the correction from the recent highs continues. The DAX technical outlook is positive despite the recent correction. The index seesaws around ascending trendline which started back in January 2019. A break below might question the year-long bullish momentum.
Bears need to clear several barriers to the downside in order to take control. First support for the DAX index stands at 13,382 today’s low. In case the index breaks below, the next support zone will be met at the 50-day moving average at 12,234. If sellers surpass that level the next hurdle is at 12,949 the low from January 6.
On the flip side, the initial resistance for the Dax index is at 13,492 today’s top. Next resistance level will be met at 13,528 the high from January 13th. The all-time high from January 23rd 2018 at 13,596.89 is the next resistance point.