Germany's unemployment rate remained unchanged in September, the jobless rate held steady at adjusted 3.4%. At the same time, employment increased by 39,000 in September from August. The Federal Labor Agency is set to release Germany's unemployment data for October later today. Economists forecast jobless claims to decline 11,000 in October after falling 23,000 in September. Also this morning, market sentiment got a boost amid reports that China is considering a tax cut to revive its flagging automotive market. European markets rose on Monday after Italy dodged a ratings downgrade. To come in the economic events calendar today, in addition to German unemployment figures at 0855 GMT, we have eurozone Q3 GDP at 1000 GMT, and German inflation readings at 1300 GMT.
The DAX ended the day yesterday indecisive from a technical point of view. Neither buyers nor sellers were able to gain control during the session. Prices are trading close to the key technical resistance level at 11460 and momentum doesn't seem strong enough to push through. The RSI looks mixed to bullish signaling short term upside action targeting the resistance level as well as the 200-period MA which will also attract sellers.
Support: 11055 / 10785
Resistance: 10460 / 11815