The DAX made a modest rise of 0.12% on Monday amidst lack of clarity on US-China trade relations and Brexit. Over the weekend, the latest round of US-China tariffs went into effect and tested market sentiment with the prospect of the resumption of trade negotiations. In terms of economic data, manufacturing activity held steady at 47 in the Eurozone and declined to 43.5 in Germany thereby reinforcing the region’s slowing economy. There are no major economic releases from the Eurozone today which leaves influence on the DAX to developments in the US-China trade dispute and Brexit.
The DAX gained 14 points to end at 11953 on Monday. The price spent the day trading within the range of 12000 and 11900 and has yet to trade above or below the respective levels for further direction. Look for a break above the 12000 level to target the higher resistance near the 50-period MA at 12080. On the other hand a sustained move below 11900 would indicate selling pressure and while a break below the 11860 support level would suggest further downside and lead the DAX towards the 11800 level.
Resistance: 12000 /12080