The DAX traded 0.23% lower on Wednesday as US-China trade plans encounter a setback as the summit in which the two nations were supposed to meet was cancelled. The news overshadowed any positivity stemming from Wall Street as the FED delivered its third rate cut this year while Chairman Powell’s speech failed to indicate signals of future monetary policy easing. Moreover, weak earnings report out of Deutsche Bank weighed dragged it share prices lower and in turn the German blue-chip index. In terms of data, Germany’s unemployment rate held steady at 5% while its unemployment change disappointed and came in at 6k versus an estimate of 2k. Today Germany published retail sales data for September which came in lower than expected at 0.1%. Later, the Eurozone publishes its 3rd quarter GDP, unemployment rate and inflation data. The data should mildly influence price action while traders continue to look to corporate earnings and trade developments for further direction.
The DAX ended 29 points lower at 12910 on Wednesday. The price initially held above the 12890 level before briefly dropping to find support at 12830. The range-bound price movement was sustained by the resistance at 12960 which has yet to be broken to enable gains towards the high at 12988 near the 13000 resistance level. A trade above 13000 would signal a bullish continuation for the DAX. Failure to trade above 12960 would keep the DAX trading sideways until a sustained move below 12890 indicates the bears’ control while a break below 12830 would suggest a short-term pullback and target the lower support at 12750 followed by 12650.
Resistance: 13000 /13130