The DAX traded 0.85% higher on Thursday at the back of renewed trade optimism and improved sentiment towards Brexit both of which offset disappointing factory orders data from Germany. Today, Germany released industrial production data for July which showed a decline of 0.6%. Yet to be released during the day is the 3rd estimate Q2 GDP figure for the Eurozone. Moreover, the DAX may take directional cues from Wall Street as the US publishes its monthly jobs report. Apart from the data, traders should continue monitoring US-China trade headlines and Brexit developments as geopolitics dominate influence on global equities.
The DAX extended gains by 101 points to end at 12126 on Thursday. The price overcame the resistance at 12080 near the 50-day MA and traded shy of the resistance zone at 12175/12200. Today, look for price to exit the range of 12080-12175 to indicate direction. A sustained move above the 26175 level would indicate buying pressure and lead price to the higher resistance at 12290. On the other hand, a decline below 12080 would indicate selling pressure and lead the DAX to the support at the 12000 level.
Resistance: 12200 /12290