FxWirePro: DAX trades lower on global growth concern and US-EU trade tension, good to sell on rallies

DAX has halted its 10 days of winning streak. The index hits high of 12025 and lost nearly 150 points from the high as IMF downgrades global economy outlook. IMF cuts global growth forecasts to 3.3% from estimate of 3.5% in Jan and 3.7% in Oct.US President threatened to impose tariff on $11worth of European Union products.DAX was in bullish phase after a massive 330 points sell-off from major top 13601 made on Jan 23rd 2019. The index has halted its major weakness on Dec 27th and jumped nearly 1800 points. The jump was mainly due to strong US markets and easing US-China trade tensions. Markets eye ECB policy, Fed meeting minutes and EU Brexit summit.The index hits low of 11850 and is currently trading around 11883.

Technically, index is facing major trend line resistance around 12100 (trend line joining 13601 and 13202) and any break above will take the index to next level till 12353 (61.8% fib)/12600/12800.

On the lower side, near term support is around 11797 (300- day EMA)11600 (200- day MA). Any close below 11600 confirms further weakness and a decline till 11400/11270 is possible.

It is good to sell on rallies around 12000-025 with SL around 12200 for the TP of 11400/11290.