The DAX ended 1.68% higher at the back of China’s support for a stronger than expected yuan and better than expected Chinese trade data. Today, Germany publishes its trade data for June which isn’t expected to show improvement as the export-oriented nation suffers from the US-China trade war. While the data should influence price action, sentiment towards the US-China trade war should be the key driver.
The DAX managed to hold above the 200-day MA at 11650 and trade through the resistance at 11750 to gain 195 points and end at 11845. Today, if bulls are to extend the DAX’s rebound, overcoming the 50-period MA near 11890 would enable gains towards the 12000 level. Failure to hold above 11830 and test the 11890 level would lead the DAX lower with immediate support found at 11750 followed by 11650.
Resistance: 11890 /12000