A positive close on the DAX for the 4th day in a row, gaining 58.2 points and closing at 12413.9 as investors’ risk appetite remained strong despite the U.S - China escalating tariff war. On Sunday, China canceled trade talks with the U.S. as another round of tariffs emerged which have been set in motion as of today (a 10% tariff on $200 billion of Chinese goods, vs. a 10% tariff on $60 billion of U.S goods with the Chinese warning of "qualitative" retaliatory measures). In economic news, German Business Expectations, German Current Assessment, German Business Climate Index data is expected to be released at 08:00 GMT. Later on, ECB President Draghi will be giving a speech at 13:00 GMT.
DAX is showing divergence patterns on the 4H and 1H timeframe against the RSI indicator, as both RSI and MACD indicators turn bearish. Uptrend parallel channel is still important as the market could use it as support, or break it as further confirmation of downtrend momentum.
Support: 12250.1 12161.5
Resistance: 12407.4 12481.9