The DAX continued to erase last week’s losses and extended Monday’s rebound to gain 72 points led by positive cues from Wall Street despite pressure from the German treasury yield turning negative. While there are no major economic releases from the Eurozone, members of the ECB are scheduled to speak throughout the day and the negative outlook on the Eurozone’s economy still holds. Moreover, US-China trade headlines will be monitored while the UK undergoes a decisive day as a series of parliamentary votes that will dictate the course of Brexit.
The DAX index traded 0.64% higher on Tuesday and ended at 11419. The index has yet to clear the resistance at 11480 to push higher and target the 50-period MA around 11540. Failure to trade through the 11480 level will lead the index lower with a break through the 20-period MA at 11380 required to target the low at 11270.