European Indices traded higher across the board with the DAX rising by 0.83% on Wednesday. Trade sentiment was improved at the back of news that China and the US had agreed to roll back tariffs as part of their phase one deal. While it currently improves the global economic outlook, it has yet to be confirmed and take effect in order to mitigate the negative impacts of the trade war on global growth. In terms of data, Germany and China publishes trade data earlier in the day, both of which showed an improvement in imports and exports. The data will provide support during the day while markets’ will continue monitoring trade headlines for further confirmation of the tariff news .
The DAX managed to score its 4th consecutive gain this week as it extended itself to close 109 points higher at 13289. The price broke above the high at 13211 and found resistance near the 12300 level. Today, Dax futures are pointing lower and a sustained move below 13200 near the 20-period MA would signal a short-term pullback and target the lower level at 13110. On the other hand, holding above 13200 would maintain range-bound price action until a break above the resistance at 13300 signals a bullish continuation and targets the all-time high at 13600.
Resistance: 13300 /13338