As German markets were closed on Wednesday due to the May Day public holiday, The DAX is likely to pick up cues from yesterday’s events. The FOMC meeting which expectedly left rates unchanged while showing no support for the case of a rate cut prompted a sell-off on Wall Street which may drag on the DAX index. In terms of data, Germany publishes retail sales and manufacturing PMI report alongside the Eurozone which are likely to impact price action during the day.
The DAX edged 0.13% higher to end at 12344 on Tuesday. Futures were pointing lower earlier today as the price touched on the support at 12250 before maintaining range bound price action below the resistance at 12350. The price would have to break above this level to signal the continuation of the uptrend and target resistance levels 12400 and 12460. Meanwhile, the daily RSI reading remains overbought suggesting there is potential for a deeper pullback towards 12200 and 12150, should the 12250 level fail as support.