DAX Index Retreats On Cautious Trading

DAX Index started the trading session lower after President Trump signed the legislation backing protesters in Hong Kong. Investors now await if the Chinese government will retaliate. The U.S. plans a new round of tariffs on Chinese goods on December 15.

Yesterday the prices of German exports decreased by 0.2%, while the prices of German imports declined by 3.5% in October (YoY).

Recent economic data shows that the German economy might leave the worst behind after the stronger manufacturing PMI reading the previous week.

Dax Index Technical Outlook

Dax 30 index is 0.34% lower at 13,241 today as investors taking some profits off the table on fresh trade talk worries. The momentum remains bullish despite today’s pullback as it trades above all major daily moving averages and the price holds inside the ascending channel which started back in December 2018. Recent pullback helped the index to exit from the overbought area at 62.74 according to the daily RSI 14  index.

Dax Index Chart

DAX Index Retreats On Cautious Trading
DAX Index Retreats On Cautious Trading

On the downside, the Dax index will find minor support at 13,245 today’s low, while the ascending trendline crossing at 13,130 might offer some extra bids. In case that the Dax breaks below the ascending trendline, bears will target the 50-day moving average at 12,774.