The DAX declined by 0.36% on Tuesday as recently implemented US-China tariffs burdens the prospect of progressive trade talks and maintains cautious sentiment. Moreover, Brexit uncertainty persists as the UK parliament take legislative moves to prevent a no-deal Brexit led by PM Johnson and seek to delay Brexit. Meanwhile poor manufacturing data out of the US also provided direction in yesterday’s session. Today, the Eurozone and Germany release services PMI which will provide further insight into the region’s economic performance. In addition the Eurozone publishes retail sales data which would provide direction. As geopolitical themes dominate markets’ attention, we can expect any Brexit and US-China trade development to hold the stronger influence on price action.
The DAX lost 42 points to end at 11910 on Tuesday. Price briefly dipped below the 11900 level to find support near 11860, however remains directionless. Look for a trade below the 11860 level to target the support at 11800 below which the DAX should see further weakness. On the other hand, a break above the 12000 level would be required to target the higher resistance near the 50-period MA at 12080.
Resistance: 12000 /12080