German shares look set to open a tad higher on Wednesday as the US midterm election results offered no major surprise. Democrats took control of the House of Representatives in the elections, however, Republicans retained control of the Senate. Traders look ahead to the Federal Reserve's monetary policy announcement due on Thursday, with many expecting the Fed to leave interest rates unchanged. Traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December. Reports on German factory production and Eurozone retail sales figures are scheduled for release later in the session.
On the daily chart, the German index managed to close above the 20-day moving average at 11478 for the first time since October 4th. Though the market is experiencing a short-term uptrend that might target the 11666 resistance level, this could just be a correction, as both the medium and long-term trends are still bearish. The RSI looks mixed to bullish suggesting a strong upside momentum for the next few hours.
Support: 11460 / 11055
Resistance: 11666 / 11820