The DAX index recovered last week’s losses as it edged higher on Monday despite weaker industrial production data and a lower trade surplus from Germany. While today holds no major data releases, the UK’s vote on PM Theresa May’s divorce deal will influence global sentiment and price direction on the DAX. This week’s price action will be highly reliant on news driven momentum as further Brexit headlines await and Sino-US trade negotiations are far from over.
After bearish price action pushed the DAX to a low of 11400, the index traded higher on Monday to close above the resistance at 11540. Sustained price action above this level suggests the bulls have regained control and will look to push past the peaks at 11650 and 11680 to target higher resistance levels. A lack of bullish momentum may keep a lid on positive price action, while a trade through the 11540 would suggest a move back down.
Resistance: 11650 / 11680