The DAX traded 0.17% higher on Friday as trade optimism provided support. Markets are hoping that the two nations would finalize the agreements made in the first phase of the trade negotiations. Separately on economic data, Germany’s consumer climate index ticked lower to 9.6 while the business climate index remained unchanged at 94.6, better than its lowered estimate. Elsewhere, the EU delayed its decision to grant Britain an extension on the date of withdrawal. There are no major economic releases to influence price action and market participants will look to trade and Brexit related headlines as the EU is expected to announce its decision on Brexit’s extension today.
The DAX sustained its bullish momentum as it recorded a modest rise of 22 points to end at 12894 on Friday. The price managed to hold above the 20-period MA and 12820 level before trading above the resistance at 12890. Today look for price to show a sustained move above 12890 to indicate buying pressure and target the resistance at 12950 followed by 13000. Meanwhile, the RSI reading continues to diverge from price action thereby suggesting that price may tread higher to form a top before reversing. Failure to take out the high at 12918 would indicate bullish momentum is weakening while a trade below the 12830 level near the 20-period MA would lead the DAX towards the lower level at 12750. A break below the most recent low at 12650 would be required to impair the bullish view
Resistance: 12950 /13000