The DAX index, sensitive to global trade developments, climbed 0.75% higher on Friday on hopes of US-China trade progress while German economic data pointed toward a decrease in unemployment numbers and an increase in retail sales for January. Though the risk of US auto tariffs on the Eurozone remains an uncertain headwind, optimism should continue to grow around speculation that an imminent US-China trade deal is in the picture and sustain positive price action in the DAX.
The Dax index managed to extend gains past the resistance at 11540 and should break through the 11690 level for further upside move with the next major resistance around the 200-day MA at 11860. Alternately, a trade below 11540 may indicate short term weakness while a break below the support at 11400 would be needed to signal bearish price action.
Support: 11540/ 11480
Resistance: 11690/ 11860