The DAX edged 0.17% higher to end at 12020 as US-China trade hopes buoyed bullish sentiment despite disappointing earnings reports from Wall Street. Today, the Eurozone and Germany publish ZEW economic sentiment with both readings expected to improve and turn positive. Despite concerns over the Eurozone’s slowing economy, market participants are looking to the positives, which is progress on the global trade front, to maintain the upward bias on the DAX while earnings out of Wall Street continue to influence price action throughout the day.
The DAX index traded lower within the day and reached support at 11990 before edging higher to close at 12020. The price traded through the resistance at 12040 today suggesting further advances towards the first resistance at 12100. While the RSI reading has ample room to move up before entering the overbought region, it has failed to form a higher high corresponding with price action suggesting a possible reversal before the DAX can find support at the 12,000 level and push higher.