DAX Index nudged lower today giving up 0.26% at 12,906 as markets have fully priced a 25 basis point cut by Fed later today. I don’t expect that Fed will cut further in December except if we see a significant deterioration in the upcoming economic data. On Brexit front, UK heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020. Germany Unemployment Rate came in at 5% in line with forecasts for October, but the unemployment change came in at 6k above the 3k expected. Italy’s Business Confidence came in at 99.6, topping expectations of 98.5 in October.
DAX retreat today as the short term positive momentum holds strong as the index trades above all major daily moving averages; an attempt to yearly highs might be the possible scenario for now. Today’s correction move just reaffirms the recent bullish momentum which started from August 15th lows (11,275) as Dax breached the 50-day moving average and the 100-day MA.
On the downside, immediate support for DAX index stands at 12,895 today’s low, while sellers below that level will target the 50-day moving average at 12,300. Next support level for index stands at the 100-day moving average at 12,233.