We have seen the release of a series of German economic data for Nov this morning, which were overall better than the previous figures.
Trade Balance rose to 21.7 B, from 20.6 B in Oct. Current Account rose to 24.6 B, from 19.4 B in Oct.
Exports (MoM) rose to 3.9%, from 0.5% in Oct. Imports rose to 3.5%, from 1.2% in Oct.
The Eurozone Unemployment Rate was also released this morning, in line with the expectations and the previous figure of 9.8%.
The better than expected German economic figures failed to help the DAX Index rally, as it was trading below the near term major resistance level at 11640, where the selling pressure is heavy.
The price plunged 101.8 points, from the intra-day high of 11638.20, to the low of 11536.40 with a long bearish candle. The fall was held temporarily after testing the near term major support line at
The DAX Index has surged since 5th Dec with strong bullish momentum. Yet the uptrend has turned into consolidation pattern since the beginning of this year, due to upside increased profit taking pressure. Be aware that a rebound is likely to be followed by a deep retracement.
On the 4 hourly time frame, the 10 SMA is crossing over 20 SMA, indicating a reversal of the trend.
The daily Stochastic Oscillator is heading downwards, indicating a retracement.
The resistance level is at 11570, followed by 11600 and 11640.
The support line is at 11550, followed by 11530 and 11500.