DAX continues higher today after the correction from 2-month highs after EU Consumer Confidence came in at -6.5, beating expectations of -6.8 in September. On the other hand the sequence of dismal macro data from the old continent continues and today, the EU Economic Sentiment Indicator came in at 101.7 below expectations of 103, the Industrial Confidence came in at -8.8, below forecasts of -6 in September, while the Business Climate came in at -0.22, also below expectations of 0.11 for September.
ECB last week, cut its deposit interest rate at -0.50% and launched a new round of monthly bond purchases. The German main stock index has gained over 10% since the August lows and 17% in 2019.
DAX bullish momentum from August 15th lows is intact as the index hovers close to six-week highs and above all major daily moving averages. On the upside, the immediate resistance is at 12,361 today’s high and then at 12,592 the high from July 25th, a convincing break above might drive prices to yearly highs at 12,653. Bulls will gain traction if Dax Index returns inside the ascending channel which started back in December 2018.