DAX Index Retreats Lower, Tests First Support

DAX Index has retreated 0.3% lower this morning, following the footsteps of FTSE 100, ahead of another British Parliament vote later today. The index is now testing the first horizontal support following the creation of a fresh 4-month high of 12986 yesterday.

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In the meantime, Jens Weidmann, the President of the Deutsche Bundesbank, is delivering a keynote speech at the 2nd Financial Market Conference of the Deutsche Bundesbank. The topic of his speech is climate change and the role of central banks.

Among other things, Weidmann said that “bond purchases should be limited to exceptional situations in Eurosystem monetary policy and should by no means become a permanent instrument”.

DAX Index has meanwhile retreated from the fresh 4-month high it recorded yesterday. However, the bulls are expected to continue climbing higher with the eyes on the test of the 127.2% Fibonacci extension (12656 – 11266 move lower). The break of the descending trend line around the 12450 mark may facilitate a bigger move higher.

On the downside, the DAX Index is currently testing the first minor intraday support around the 12900 handle. The previous swing high of 12650 provides major support to bulls.

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DAX Index daily chart

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