The DAX snapped its 3 day streak of losses and rose 0.99% on Monday to close slightly above the 11,000 level as ECB vice president Guindos said that inflation continues to slow however reassures that it should accelerate in the medium term. Investors’ sentiment will rely on this week’s US-China trade talks that demand progress as the trade deal deadline nears while the slowdown in the Eurozone remains a matter of concern. Today, European equities are likely to be impacted by a series of speeches from German Bundesbank President, Fed Chairman Powell and BOE Governor Carney.
The DAX index closed at 11014 , above the 50-day MA at 10970 separating it from further downside pressure. Price is currently rising to test resistance of 11150 coinciding with the 50-period MA. Should upside momentum build and the RSI reading maintain above the 50-midline, taking out the 11150 level may push price to test resistance at 11260. Failure to do so will have price retreat whilst ranging above the 11,000 level.
Support: 10970/ 10860
Resistance: 11150/ 11260