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.
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