The DAX Index ended last week on a positive note as it rallied 0.85% to end at 11685. The concluded parliamentary votes on Brexit and positive sentiment surrounding US-China trade progress despite a delay of the scheduled meeting between the nations’ presidents aided the risk on mood. Nonetheless, European equities face fundamental headwinds of a slowing European economy and the risk of US auto tariffs. In the near-term, price action on the DAX is likely to be influenced by global markets’ reactions to Brexit and Sino-US trade developments while the highlight of week resides on monetary policy meetings from the FED and BOE.
With the DAX trading through resistance at 11680 signaling the resumption of the uptrend, the short-term outlook is in favor of bullish price action with the next target resistance levels at 11730 and 11790 around the 200-day MA should bullish momentum sustain. Failure to trade through the 11730 level should leave the index consolidating gains with immediate support found at the 20-period MA around 11620.
Support: 11620/ 11540
Resistance: 11730 / 11790