The DAX index managed to close 0.88% higher as Germany’s trade surplus and Eurozone unemployment rate resulting in unexpected positive figures lifted sentiment alongside positive headlines on Sino-US trade talks and this month’s dovish message by Fed Chairman Powell. The ongoing optimism will depend on how the trade truce between the US and China progresses and its effect on the exporting German economy. Traders should draw attention on today’s ECB’s minutes of meeting on monetary policy in December and a statement by Fed Chairman Powell to reflect global economic outlook.
The DAX moved to the resistance zone of 10940-10965 before moving back downwards and leaving the upward direction in question while the price action ranges around the 20-period MA . A move below the support of 10795 could push the price action lower alongside an RSI reading crossing below the 50 mark.
Support: 10795 / 10700
Resistance: 10900 / 10965