The DAX Index made a modest rise of 0.10% to end at 12328 on Monday whilst the data provides further evidence of deteriorating conditions in the Eurozone as economic sentiment figures fell below estimate. Moreover, Today’s Chinese PMI data came below estimates and may dent risk appetite should today’s slew of economic data out of the Eurozone fail to encourage market sentiment. German reveals unemployment and CPI data alongside Eurozone’s GDP figure which are expected to influence price action on the DAX Index.
The DAX touched on a high of 12380 before ending below the 12330 mark on Monday. The price is currently pointing lower as bullish momentum weakens and the daily RSI reading has yet to exit the overbought territory. Failure to find support at the 12250 level will lead the price towards the 12200 level separating the DAX from a bearish development. In terms of the upside, the price must hold above the 12300 level and overcome resistance at 12350 whilst forming a higher high on the RSI reading to signal the continuation of the uptrend.