The DAX Index continued to post gains as Tuesday’s Eurozone data was supportive of the upward bias. In Germany, unemployment change declined to -12K and CPI data came at 1% vs an estimate of 0.5%. Similarly in the Eurozone, the unemployment rate fell by 0.1% and 1st Quarter GDP data pointed to a modest growth. The data was a glimmer of light amidst the region’s gloomy economic outlook and China’s disappointing PMI data which failed to weigh on the DAX. Given that there are no major economic releases out of the Eurozone today, Wall Street may lead direction as the Fed reveals its outlook on the US economy and forward guidance on monetary policy.
The DAX edged 0.13% higher to end at 12344 on Tuesday. The price managed to sustain above 12300 after which it must break the resistance at 12350 whilst forming a higher high on the RSI reading in order to signal the continuation of the rally towards resistance at 12460. Failure to hold above 12300 will indicate selling pressure and drive the price towards support at 12250.