Modest gain for the DAX yesterday, closing at 12374.7, as the German WPI figures released were higher than expected with investors' cautiousness on the rise as U.S-China trade war intensifies, while the market awaits the US Federal Reserve economic outlook and interest rate decision to be released today at 18:30 GMT. With the market anticipating a raise in interest rates, Powell's tone and remarks on forward guidance will dictate the price action for the Dollar and the equity markets on a global level.
The DAX ended yesterday's session with a bullish reversal bar after retracing to the 2.618 Fibonacci level at 12344.9 and confirming it as a support level. A flag formation on the hourly chart has formed with a target of +258 points in case price breaks above the flag. 12,500 and 12529.1 (Fibo level 3.618) are the next resistance levels if price breaks above 12481.9.
Support: 12344.9 12250.1
Resistance: 12407.4 12481.9