The DAX closed 25 points higher yesterday at 12,014.7 as market sentiment towards the US-China trade war takes a positive turn with US Treasury Secretary Steven Mnuchin inviting the Chinese for a fresh round of talks (in the coming weeks) before applying any tariffs. In economic news, German MOM and YOY CPI figures (for the month of August ) released today came out as expected at 0.1% and 2% respectively. Investors await ECB’s Interest Rate decision and press conference at 11:45 and 12:30 GMT.
DAX is in an uptrend consolidation after registering a close above our 12,035.6 resistance level. Bullish head and shoulders formation to be confirmed with a close above the neckline (Black line on chart) with target set at +134 points from the break.
Support: 11,934.8 11, 895.6
Resistance: 12,106.7 12,247.6