The DAX rose by 0.58% on Thursday as news that US-China trade negotiations will continue for a second day and positive Brexit headlines suggesting there is potential to reach a deal provided support. Today, markets will be seeking any signs of trade progress, particularly a partial trade agreement and Brexit news will also have an influence on market sentiment. Geopolitical news will remain the key drivers of price action on the DAX as the index is sensitive to the global economic outlook especially the outcome of the US-China trade negotiations.
The DAX gained 69 points to end at 12164 on Thursday. The price managed to hold above the 20-period MA and breach the 50-period MA to reach the resistance at 12200. Today, Dax futures are pointing higher and attempting to overcome resistance at 12250. Look for a sustained move above the 200-period MA at 12170 to indicate buying pressure while a break through 12250 would enable further gains towards the higher levels at 12300 and 12350. The 4H RSI reading is nearing the overbought territory suggesting that price should eventually turn lower to maintain the sequence of higher lows. A decline below 12150 would lead price to the support at 12080 followed by 12000.
Resistance: 12250 /12300