The DAX had a quiet session on Tuesday as it ended with a marginal gain of 0.04%. Cautious sentiment dominated the day as the US-EU trade conflict is back on markets’ agenda of concerns with the US’s threat to impose tariffs on the EU. Today, services PMI data out of Germany and the Eurozone will be in focus to reveal whether the services sector will exhibit the same weakness in Monday’s manufacturing PMI figures. Moreover, the DAX may take directional cues from Wall Street as the US publishes data on ADP-non-farm employment, ISM non-manufacturing PMI and factory orders. In the absence of trade headlines, economic data should hold influence in today’s session.
The DAX was barely changed on Tuesday as it gained 5 points to end at 12526. While the RSI reading has exited the overbought region, price has managed to hold above the 12500 level to indicate that bullish momentum has stalled yet buying pressure remains. The bollinger bands are seen narrowing suggesting that a consolidation phase may follow the DAX’s rally before seeing a potential reversal. Failure to overcome the resistance at the high of 12600 may lead price lower with a move below 12500 required to target the support at 12450.