The German blue-chip index rallied 1.13% to close at 11788 on Tuesday. On the data front, The German ZEW economic sentiment remained in negative territory however aided bullish price action as it resulted in a figure of -3.6 well above the estimate of -11.0. Today the Fed’s policy meeting comes to an end and is likely to influence positive price action on the DAX should the dovish stance hold.
The DAX breached the 200-day MA at 11780 in yesterday’s session before ending higher at 11788. The index is looking to target the next resistance level as it rises with the upper Bollinger band whilst maintaining support at the 20-period MA. Bullish price action persists with the next target resistance at 11860, unless the index declines below the 11680 level.