DAX Index retreat today giving up 0.29% at 12,873 as investors digest the third interest rate cut by Fed and signalled that will not proceed with further cuts. On the economic data front, the European Monetary Union Unemployment Rate came in at 7.5%, topping expectations of 7.4% in September. European Monetary Union GDP s.a. (quarter over quarter) came in at 0.2%, also topping forecasts of 0.1% for 3Q. The European Monetary Union Consumer Price Index – Core (year over year) came in at 1.1%, above expectations of 1% in October. Yesterday 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.
On the Brexit front, Great Britain heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.
Dax Index Technical Levels
DAX short term positive momentum holds despite today’s correction 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 brought the index briefly below and outside the ascending channel which started in January 2019.
On the downside, immediate support for DAX index stands at 12,875 today’s low, while sellers below that level will target the low from October 23 at 12,700. Next support level for the index stands at the 50-day moving average at 12,321.
On the upside where investors focus shifted, the immediate resistance is at 12,953 today’s high, a convincing break above might drive the index up to 12,984 the high from October 28th. Bullish momentum for Dax Index will be intact as long as the index trades inside the ascending channel which started back in December 2018.