The DAX traded 0.54% higher on Friday despite weak economic data as market sentiment remains buoyed by US-China trade optimism and hopes of averting a no deal Brexit. In terms of data, the Eurozone Q2 GDP figure was in line with estimates at 0.2% however down from Q1’s 0.4%. Moreover, China released disappointing exports data over the weekend which may very well dampen the risk on mood. Today Germany published its trade balance data which showed its trade surplus widen as exports increased while imports dropped by 1.5%. 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 64 points to end at 12191 on Friday. The price tagged the resistance at 7200 and would now have to hold above this level to maintain bullish momentum and target the higher resistance at 12290. Note that the RSI reading is within the overbought territory, therefore a failure to hold above 7200 should lead the Dow lower towards the 20-period MA with immediate support found at 12080 followed by the 12000 level.
Resistance: 12290 /12380