Major European indices made a slight recovery on Tuesday alongside positive developments on the US-Huawei ban. The US decided to temporarily ease restrictions on business between the Chinese telecom and American companies thereby aiding market sentiment which currently revolves around US-China trade relations. However, Whether or not the news will relieve tensions between the two nations and resume trade negotiations remains to be seen. Moreover, Eurozone consumer confidence report showed a slight increase and supported the upside move on the day. Today’s lack of major economic releases will keep attention drawn to US-China trade developments to dictate price action on the DAX.
The DAX rebounded off the 12,000 level to end 0.85% higher at 12143 on Tuesday. It appears that the DAX has formed a higher low in its short-term uptrend however to restore the bullish view, price would have to overcome resistance at 12330 in order to target higher resistance at 12400. The price is holding below the 20-period MA currently at 12150 which will be indicative of near-term direction throughout the day. Look for a sustained move above 12150 to signal buying pressure and target the 12250 level followed by 12330. Failure to find support at 12090 may drive price to retest the psychological support at 12,000 separating the DAX from a bearish view.
Resistance: 12250 /12330