The DAX ended virtually flat on Monday as it remained directionless ahead of tomorrow’s FOMC meeting. The resumption of US-China trade negotiations should buoy market sentiment, and keep markets on the watch for any trade headlines to influence price action on the trade sensitive German blue-chip Index. Separately on economic data, Germany publishes consumer climate figure and inflation data which may have a muted impact on the DAX. The DAX may take directional cues from wall street as the US publishes personal spending and PCE data which is likely to influence sentiment on the FED’s monetary policy stance ahead of the FOMC interest rate decision.
The DAX traded within a range-bound before ending 2 points lower at 12417. The price has managed to found support at the 50-period MA at 12380 to maintain the bullish bias, however has yet to hold above the 12460 resistance level to target higher levels. A sustained move above 12460 is required to enable gains towards resistance at 12500 and 12550. Alternately a sustained move below the 12380 level would indicate selling pressure while a break below the key support at 12300 should target the 50-day MA at 12250.
Resistance: 12500 /12550