The DAX index rose by 0.77% to end at 12045 on Friday despite weaker than expected economic data out of Germany. The nation’s industrial production declined by 1.9% in April while trade surplus narrowed to 17B. The data was overshadowed by a weak US jobs report which translated into hopes of a Fed rate cut and provided support for US and European majors. Moreover, late news on Friday reported that the US and Mexico had reached an agreement that would avoid imposing US tariffs today. The positive trade development should uplift global sentiment however leaves the US-China trade war as an ongoing concern. There are no major economic releases out of the Eurozone today and focus will remains on world trade developments to lead direction. Meanwhile, The Frankfurt Stock exchange is closed which should result in low-volume trading.
The DAX managed to reverse losses from the previous session with gains that enabled it to hold above the 12,000 mark on Friday. The price is currently advancing above its close at 12045 and targeting the resistance at 12150 which would clear the path towards 12200 and 12250 if it generates enough bullish momentum. Meanwhile the RSI reading is approaching the overbought territory and suggests that price may turn towards the the lower support at 11960 should it fail to hold above the 12000 mark separating the DAX from negative territory.
Support: 11960/ 11900