DAX Index Retreat Ahead of IFO Business Climate

DAX index started the trading session lower giving up 0.37% at 13,239 as the correction of yearly highs at 13,425 continues after yesterday’s loss of 0.89%. The trade deal party is over now and investors are looking at the details. Political uncertainty is over in the UK but the question now is what will be the relationship after Brexit between the EU and UK.

Central banks are continuing with the accommodative monetary policy the support global equities. European Central Bank and Fed kept rates unchanged as expected by economists. Forecasts now suggest that the Fed will keep the current interest rates throughout 2020.

Read our Best Trading Ideas for 2020.

Bulls Control Dax 30 Despite the Correction

Dax 30 momentum is bullish despite the two-day correction as the index trades inside the ascending channel that started early 2019.

On the downside, the Dax index immediate support stands at 13,238 today’s session low. Next support for the index will be met at 13,035 the 50-day moving average. If the DAX index breaks the 50-day MA support then the next target to the downside is at 12,521 the 100-day moving average.

On the other hand, Dax 30 first resistance stands at 13,276 the daily high. The next supply zone stands at 13,400 the high from yesterday’s session. If the index breaks then a visit  to 13,596 the top from January 22nd  would be a possible scenario.

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