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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Dax Slips As Coronavirus Fears Persist

Article By: ,  Senior Market Analyst
February 10, 2020 6:39 AM
The Dax, likes its European peers has started the week on the back foot. Coronaviris fears continue to dampen demand for riskier assets, as the number of infected hits 40,000 and as the death toll surpasses that of SARS. The rapid spread of the virus, which shows no signs of slowing down, is raising concerns over the growth of the world’s second largest economy. 

The measures being taken to protect the Chinese public and seal off the Hubei province are expected have a negative impact on the Chinese and global economy. It is widely accepted that China will not reach its 6% GDP target, however the exact impact is proving hard to gauge and will depend greatly on how quickly the spread of the virus can be brought under control

Chinese CPI caps losses
After losing 0.5% on Friday the Dax is extending those losses on Monday, trading down a further 0.2%. Stronger than forecast Chinese inflation data has helped to limit the sell off at the start of the week. Meanwhile eurozone sentix investor confidence figures dropped to 5.2 in February down from 7.6 the previous month and short of the 5.9 forecast, dampening the mood.

Eurozone data showed a promising start to the year. However, the figures have since deteriorated. Last week eurozone, and particularly German data revealed that it was too early to call the bottoming out of the slowdown. Traders will look ahead to German and eurozone GDP data later this week, which could struggle to arrive at 0.1% growth. 
On the Dax Daimler was a rare advancer, gaining 0.6% amid plans to cut 15,000 jobs in a bid to reduce costs.

Levels to watch:
Dax is trading down 0.2%, although it remains above its 50, 100 and 200 sma on the 4 hour chart. Failure last week to break meaningfully 13600 has seen the Dax back in its sideways pattern that it has traded in since the end of 2019. 

Immediate resistance can be seen at 13551 (7th Feb high) prior to 13606 (high 6th Feb). We would be looking for a meaning break above 13606 for the Dax to make an attack on its all-time high of 13640.
Immediate support is at today's low of 13445, prior to the 50 sma at 13375, closely followed by 100 sma at 13351. A breakthrough here could see the bears back in control, heading towards 13133. 






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