Thursday, September 5, 2019



Fundamental Highlights

The DAX traded 0.96% higher on Wednesday as easing geopolitical tensions in Hong Kong and positive Brexit developments improve overall market sentiment. In terms of data, Services PMI data out of Germany and the Eurozone came in above their respective estimates. Today however, Germany released factors orders data for July which showed a decline of 2.7%. On the global trade front, news that the US and China agreed to meet in October to resume negotiations uplifted trade sentiment and should offset the impact of disappointing data. Improved trade sentiment should inspire risk on flows today and traders should continue monitoring trade and Brexit headlines to influence direction on the day.

Technical Analysis

The DAX gained 114 points to end at 12025 on Wednesday. The price managed to break above the 12000 resistance level and reach the 50-day MA at 12080. Today, Dax futures are pointing higher as price broke above the 12080 level and is attempting to overcome the resistance zone of 12175/12200 to target the resistance at 12290. Look for a sustained move above the 12080 level to maintain buying pressure while a decline below this level would target the support at 12000 followed by 11900. The RSI reading has reached the overbought territory and may see the DAX turn lower before advancing beyond 12170.

Support: 12080/12000
Resistance: 12200 /12290

Chart (H4)