European PMIs Set Back DAX Index & Other European Indices

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Written By: Eno Eteng (MSTA)

Dec 03, 2020, 17:35 GMT 17:35

DAX index

Summary:

It was another bearish day for the DAX Index, as it dropped for the 2nd day in a row as European PMIs disappoint the markets,

The DAX index is presently trading lower by 0.45% as at the time of writing, as the Eurozone PMIs for November disappointed the European markets.

Spanish Services PMI came in at 39.5, which was lower than last month’s reading of 41.4.
Italian Services PMI dropped from 46.7 a month earlier to 39.4 (consensus 40.9).
French Final Services PMI was 38.8, lower than the consensus of 49.1.
German Final Services PMI also came in lower at 46.0, failing to measure up to the previous and consensus readings of 46.2.

These PMI data indicate that business conditions in the EU’s services sector have slowed in November, as renewed lockdowns stalled services business in the wake of the second coronavirus wave.

Technical Levels to Watch

Today’s downside move pushes the DAX index towards the support at 13191.155. A recovery in the DAX index needs a bounce on this area to send the index towards 13346.699 as the initial upside target, with 13473.918 and 13629.616 lining up as additional upside targets.

However, if the support at 13191.155 fails to hold, then we could see a slip towards 13017.552. Below this level, 12882.686 and 12625.628 remain the closest downside targets, along with 12351.816.

DAX Index Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.