DAX Index has hit the fresh 4-month high of 12947 this morning after better-than-expected Import Price Index data came out from Germany. The next resistance sits above the 13000 handle in the context of 127.2% Fibonacci extension.
Import Prices Index (MoM), which measures the change in prices for goods imported by Germany, came in at 0.6% vs 0.2% expected by the market. On an annual basis, the index dropped -2.5%, better than the market consensus of -2.9%.
Furthermore, the risk appetite has improved today in the Eurozone after EU Council decided to approve UK’s request to extend Brexit until January 31.
Technically, DAX Index has cleared the 78.6% Fibonacci retracement of the January 2018 – December 2018 move lower. The bulls are now taking the price towards the next resistance, in the context of the 127.2% Fibonacci extension, which sits at $13040. On the downside, the previous multi-month high around the $12800 mark now becomes a support.