The DAX traded 0.23% lower on Monday as uncertainty over US-China trade situation drags on sentiment. The two nations have yet to remove tariffs as news reported as part of their phase one deal in order to progress. Since President Trump denied such potential concessions, markets have been cautious and running out of bullish fuel. Today, President Trump is scheduled to speak to which markets will tune in for insight on the US-China trade situation. In terms of data, Germany and the Eurozone publish ZEW economic sentiment figures both of which are estimated to show improvement for November and are likely to impact price action during the day.
The DAX extended losses from Friday into Monday’s session as it declined by 30 points to end at 13198. The price found support at 13140 before trimming some of its losses. Today Dax futures are pointing higher as price continues to rebound off of yesterday’s low. Look to the 20-period MA near 13240 to provide direction as a sustained move above this level may lead to a re-test of the resistance at 13300. Failure to hold above the 20-period MA would lead the DAX to drift lower with a trade through the 13140 level required to signal further weakness and target lower levels at 13110 ,13070 and 13000.
Resistance: 13300 /13338