DAX closed 106.2 points higher on Monday as Germany's Retail Sales year-on-year figure for the month of August hit expectations of 1.6% vs. a previous of 0.8%, and on the back of positive trade news as Canada agreed to join the U.S – Mexico Trade Agreement (now known as United States-Mexico-Canada Agreement). German Auto stocks surged as the deal caps Canada's auto exports to the United States. The news removed some uncertainty over trade, a topic that has weighed on the market over the past few months. In other economic releases, Eurozone manufacturing activity grew at the weakest pace in two years in September and the Eurozone Unemployment near a decade-low in August, with the jobless rate dropping to 8.1%. Today, we only have the Eurozone PPI numbers coming out at 09:00 GMT.
The DAX bounced off the 200-period SMA to reach the resistance level of 12344.9. A bearish reversal bar was formed at that level, confirming the downtrend and pushing prices lower to test the 200 period SMA. A downward breach of the 200 period SMA will lead to further bearish momentum with our respective support levels as targets, while a breach of our downtrend will have prices retest our resistance level
Support: 12208.5 12172.7 12126.9 12049.5
Resistance:.12344.9 12407.4 12459.6