DAX index trades lower but managed to recover most of the early morning losses. Rising geopolitical risk after the missile attack in U.S. base in Iraq weighs on investors sentiment. Traders attention has shifted to safe-haven assets since the killing of an Iranian General. Now the investing community await President Trump’s statement on the USA-Iran conflict.
On the economic data the European Monetary Union Services Sentiment registered at 11.4, topping forecasts of 9.5 in December. European Monetary Union Business Climate came in at -0.25 below expectations of -0.16, the Industrial Confidence came in at -9.3, below estimates of -9. The Economic Sentiment Indicator registered at 101.5, beating forecasts of 101.4 for December.
Dax 30 Index Breaks Below the 50-day Moving Average
Dax index started the session sharply lower but since then managed to recover most of the losses. As of writing the Dax index is 0.8% lower at 13,217. Now the outlook is still positive but the bulls need to return above the 50-day moving average.
On the downside, initial support for Dax index stands at 13,106 today’s low. The low from January 6th at 12,950 will provide extra support. If Dax breaks below, the next level to watch for bears on the downside is 12,884 the low from December 10th.
On the upside, initial resistance for the Dax index is at 13,230.25 today’s top. The high from yesterday session at 13,280 will be the next barrier. The high from December 27th is the next resistance while if DAX manages to break above will open the way for the 2019 high at 13,425.85.