European markets fell on Wednesday as German business sentiment data disappointed. Today however, German stocks are set to open higher after the US and the EU stepped back from the brink of a trade war amid heightened tensions between them. US President Trump and European Commission chief Juncker have agreed to work for zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto goods. They also agreed to increase trade in services and agriculture, including greater US soybean exports to the EU. On the news front, the monetary policy meeting by the European Central Bank will be closely watched, with no immediate changes to policy expected.
From a technical perspective, the German Index is still trading above its 200-period MA on an hourly chart, signaling more upside potential, however the RSI is mixed to bearish signaling a slight price decrease from the €12,780 resistance area.
Support: 12640 12410
Resistance: 12780 12900