The DAX traded 0.14% higher on Wednesday to be the only of major European Indices to end in green. While the drop in the German consumer climate index figure provided no support, The DAX saw a boost off of positive trade headlines as a US official expressed optimism over trade progress at the G-20 summit. Nonetheless, market participants were hesitant in taking direction as they await the outcome of the US-China meeting. Today’s focus will be on Eurozone consumer confidence figures and German inflation data where any signs of slowing would encourage the ECB’s outlook on policy stimulus. Moreover, the US publishes weekly jobless claims and GDP data which may influence direction on the DAX. Economic data should impact price action during the day in the absence of trade news while sentiment will remain cautious ahead of the G-20 summit.
The DAX ended 16 points higher as the price bounced off of the support around 12170 and reached an intraday high around 12315 before ending at 12245. Futures are pointing higher this morning, suggesting that the Dax’s upside price action may be an attempt to form a lower high where resistance around 12315/12300 can be found. Failure to edge above 12315 would lead the DAX lower with a sustained move below the 20-period MA at 12250 required to drive the DAX to re-test the lower support levels at 12200 and 12170.