The DAX rose 0.38% on Thursday as the Fed’s outlook on easier monetary policy and ECB’s renewed dovish stance improved sentiment for the index. Moreover, hopes of a resolution between the US and China have temporarily eased concerns as the two nations will reportedly resume negotiations ahead of their meeting later this month. In terms of data, the ECB’s economic bulletin didn’t reveal anything new as projections point to weaker economic growth given the risks posed by global trade and political uncertainty. Today Germany and the Eurozone publish manufacturing PMI figures which should have an impact on price action during the day as markets assess the performance of the manufacturing sector while sentiment is buoyed by the prospect of monetary policy support from global central banks.
The DAX extended gains shy of the resistance at 12450 before ending at 12355 on Thursday. The price managed to hold above the 12280/12300 support zone and traded through the 12360 level which will determine near-term direction on the DAX for the day. Holding above 12360 would maintain the upside bias with a break through 12450 required to target the higher resistance at 12500. Meanwhile, a sustained move below 12360 would indicate selling pressure with a break below the support at 12280 required to target the lower support at 12240/12225.