The DAX started off the week in green as it traded 0.28% higher on Monday. Aside from the renewed US-China trade optimism, economic data provide support during the day as Germany published better than expected trade data. Today, there are no major economic releases out of the Eurozone to impact price action and we may see the DAX maintain range-bound price action ahead of the ECB monetary policy meeting from which markets are expecting nothing short of a dovish message and a rate cut. Meanwhile, expect geopolitical headlines on Brexit and the US-China trade situation to influence market sentiment.
The DAX crept 34 points higher to end at 12226 on Monday. The RSI reading eased off the overbought territory while bullish momentum seems to have stalled after price traded above the 12200 level whilst remaining below the resistance at 12290. Look for price to hold above 12200 to maintain buying pressure and lead the DAX towards the resistance at 12290. Failure to do so should leave the DAX ranging before turning below the 20-period MA at 12180 to find support at 12080.
Resistance: 12290 /12380