The DAX index rose by 0.25% to close at 11515 yesterday despite the rise of geopolitical tensions in Asia and reduced optimism over US-China trade progress. The German economy’s dependence on trade relations with China implies its reliance on the strength of the Chinese economy which delivered a higher manufacturing PMI report today and may buoy price action on the Dax index amidst global growth uncertainty. Moreover on the economic calendar, Eurozone releases CPI data and Germany publishes Manufacturing PMI report alongside unemployment figures.
The DAX index formed a lower low at 11400 in yesterday’s session before it closed higher at 11515. The overall upside move remains intact and sustained price action above the resistance at 11540 will sustain bullish momentum. The RSI reading leaves room for price to move higher to test resistance at 11630 before reaching overbought conditions and potentially pulling back with support found at 11480.
Support: 11480/ 11380
Resistance: 11630/ 11700