The DAX traded 0.21% higher on Thursday as traders were cautiously optimistic over the US-China meeting this weekend. In terms of data, Germany’s annual rate of inflation accelerated in June while the Eurozone’s business confidence figures came below estimates and disappointed. Today, the Eurozone publishes preliminary inflation data for June where softer figures would buoy the DAX as it supports the ECB’s case for easier monetary policy. Meanwhile markets will monitor trade headlines to determine any change in sentiment over what is to come at the G-20 summit.
The DAX managed to edge above the 20-period MA to reach the resistance of 12330 before ending at 12271 on Thursday. Look for a sustained move above 12250 to indicate buying pressure with a break above 12330 required to restore the bullish view. Alternately a sustained move below 12250 would indicate selling pressure with a decline below 12200 required to re-test the recently found support at 12170.