In the face of disappointing data on German industrial output, DAX made gains worth 0.52% yesterday supported by growing optimism on the Sino-US trade deal as they plan to continue discussions today as well. Moreover, the Fed releases the minutes of its December meeting and may be considered outdated by investors’ disposition towards Fed Chairman Powell’s more dovish message in 2019. Meanwhile, on the data front, German trade balance and Eurozone unemployment rate are due and reflect economic state of the region.
The DAX index seeks to surpass its new resistance zone between 10940 and the 200-period EMA at 10975 while it rises followed by the upper Bollinger band. The upward direction on the DAX remains in question as the key RSI hovers around the 50 midline on the daily chart, while price action ranges above 10845 support.
Support: 10845 / 10785
Resistance: 10945 / 11000