Thursday, December 20, 2018

DAX30 - 20 December 2018

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Fundamental Highlights

European markets make a recovery on Wednesday’s confirmation of a budget-deficit deal between Italy and the EU. Adding to the positive sentiment was news from a US official stating that the US and China have exchanged calls and agreed to meet in January to negotiate a cease in the ongoing trade dispute. Traders should keep an eye out for any global trade update to stimulate the DAX index.

Technical Analysis

The DAX holds itself in bearish territory with a string of lower highs forming the upper line on the chart, making room for price to form another lower high around 10708-10,755. Meanwhile, 50-period moving average at 10800 acts as its dynamic resistance level and a break above it could mean a change in direction. Should price action break below key support at 10580, it could move to lower support levels.

Support: 10580 / 10407
Resistance: 10750 / 10891

Chart (H4)