The DAX posted strong gains on Tuesday following a day off for the German Stock Exchange on Monday. The German-blue-chip index posted a delayed reaction to the US-Mexico deal that avoided tariffs and uplifted global sentiment whilst shrugging off President Trump’s tariff threats against China. Moreover, fresh stimulus to boost China’s slowing economy amid the ongoing Sino-US trade war helped buoy market sentiment. Today there are no major economic releases out of the Eurozone however ECB President Mario Draghi is scheduled to speak and will be closely watched for further insight on monetary policy and the region’s economic outlook.
The DAX extended its rally and settled off its intraday high at 12225 to end at 12155. Look for price to hold below the 20-period MA and decline below 12050 to indicate selling pressure with a move below the 12000 level required to negate the short-term bullish trend on the DAX. Meanwhile, a sustained move above 12150 would increase the chances of overcoming the resistance zone at 12210/12225 to target higher resistance levels.
Support: 12050/ 11960