Dax index pares early gains amid growing concerns about the impact of the coronavirus spread in employment and economy. Dax index started the second quarter with losses mirroring Wall Street, as the confirmed coronavirus cases rise across the globe and the lockdown extended to many countries.
The economic data are showing some of the coronavirus damage. The Germany Manufacturing PMI came in at 45.4 (two-month lows), below the forecasts of 45.5 in March, the February reading was at 45.7. The Germany Retail Sales registered in at 1.2%, topping even the most optimistic expectations of 0% in February, the yearly reading came in at 6.4% beating the expectations of 1.5% after a sharp increase in food and toilet paper.
Dax index is 0.05% lower at 8,550, as investors trying to asses the lockdown period and how fast the economy will manage to rebound. Dax technical picture is bearish, and the upticks should considered as a selling opportunity. Dax has recovered almost 15% of the recent lows after the previous week rebound.
On the downside, initial support for Dax index stands at 9,495 the daily low. In case the pressure continues the next support zone stands at 9,125 the low from March 27. Below 9,125 the next support will be met at 8,450 the low from March 23.
On the other side, first resistance for Dax stands at 9,615 the daily high. A move above might test March 31 highs at 10,085. A move higher might challenge 10,737 the high from March 11.