While Germany was on holiday for unification day, DAX futures took direction from Wall Street as weaker than expected US non-manufacturing PMI prompted a decline before price managed to recover and trade higher on Thursday. Moreover, the services PMI figures out of the Eurozone and Germany failed to provide any support as they came in weaker than expected as well. Today, there are no major economic releases out of the Eurozone which will leave attention and influence to the US Non-farm payroll report. Disappointing data would lead the DAX lower as it would further heighten global growth fears. Market participants should continue monitoring trade headlines as it remains a key driver of price action, particularly on the DAX.
DAX futures dropped to the support at 11820 on Thursday before clawing its way back up above the 11960 level. Today, price is attempting to overcome the resistance at 12000 to target the higher levels at 12080 near the 50-day MA followed by 12150. Failure to show a break and sustained move above this level would leave the DAX ranging with a drop below 11900 required to indicate selling pressure and lead to a re-test of the support at 11820 which guards the lower levels at 11750 and 11685.
Resistance: 12000 /12080