The German Index looks set to open higher on Wednesday after US shares posted their biggest gain in six months overnight following strong earnings from major financial and health care companies, as well as encouraging reports on the US economy. In economic releases today, we have the Eurozone inflation readings at 1000 GMT. In addition, Eurostat will publish the Euro area final consumer prices and construction output figures.
From a technical standpoint, a negative signal has been triggered last week after breaking the short term trend on the 1-hour chart and selling through major support level now resistance at 11910. The RSI looks slightly bullish today signaling a rally to that resistance point, which happens also to be the 200-period SMA. Therefore in the medium term further decline is indicated, as we are clearly approaching major resistance and overbought conditions.
Support: 11460 10785
Resistance: 11910 12185