The DAX of Germany finished flat yesterday as traders were in a cautious mood after reports of another high-level shake-up at Deutsche Bank. At the same time, a survey showed that Germany's consumer confidence is set to slightly weaken at the end of the year as high inflation rates and global economic uncertainty weigh on households' sentiment. Overnight, US stocks posted strong gains as traders interpreted Powell's remarks as dovish for interest rates, and this may impact trading today in European bourses.
The bears were in full control yesterday, moving the market lower throughout the whole session. Today however the German Dax is set to rebound higher and test the resistance level at 11415. Buying might speed up should prices move beyond that level where further buy stops could get activated. However, the short term trend is still clearly bearish with the index still trading below the moving averages on the hourly and 4H charts. Additionally, the RSI looks bearish indicating short term selling ahead.
Support: 11265 / 11050
Resistance: 11415 / 11655