The Dax Index ended marginally lower at 11592 on Monday. While Sino-US trade optimism remains a key factor in influencing positive price action and buoying market sentiment, the short term outlook on the DAX is mixed ahead of ECB’s interest rate decision and monetary policy commentary on Thursday. On today’s economic calendar, Eurozone and Germany publish services PMI data.
While the trend line support on the DAX index remains intact and the RSI reading remains in positive territory, breaking through the resistance level at 11690 is needed to sustain bullish sentiment and target major resistance around the 200-day MA at 11860. On the other hand, a trade below 11540 may indicate short term weakness while a break below the support at 11400 would be needed to signal bearish price action.
Support: 11540/ 11480
Resistance: 11690/ 11860