The DAX traded 0.24% higher on Wednesday as better than expected services PMI figures out of Germany and the Eurozone provided support amidst fresh concerns over US-China trade progress. Recent headlines suggested that the two nations would delay signing the anticipated phase one deal as they have yet to agree on terms regarding the removal of US tariffs and a venue. Today, Germany published industrial production figure for September which showed a decline of 0.6% versus an estimated decline of 0.4%. In addition, the ECB’s economic bulletin report will garner attention later in the day. Apart from the data, trade headlines will continue to dominate market sentiment and provide direction.
The DAX extended gains by 31 points to close at 13179 on Wednesday. The price briefly surpassed the 13200 resistance level to record an intraday high at 13211 before maintaining range-bound price-action above the support at 13110. A decline below 13110 would signal a short-term pullback from which the DAX may be quick to recover unless we see a break below 12790 which would impair the bullish view. Should the 13200/13211 zone be met with constant resistance, then it is unlikely we see price edge any higher before turning lower as the daily RSI reading indicates overbought conditions.
Resistance: 13211 /13338