DAX Index Returns Briefly Inside the Ascending Channel

DAX index is 0.39% higher at 12,406 after ECB cut its deposit interest rate at -0.50%, and launched a new round of monthly bond purchases. Investors concerns on US-China trade tensions eased after President Trump announced a 2-week delay in tariff hikes in $250 billion in Chinese imports.

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DAX rally from the August 15th lows is intact as the index makes fresh six week highs. Bulls are in control and today Dax managed to return inside the ascending channel which started back in December 2018. On the upside, the immediate resistance is at 12,471 today’s high and then at 12,650 the high from July 4th. Bulls need to get in the ascending channel to continue for higher levels. On the downside, immediate support for the DAX index stands at 12,311 today’s low and then at 12,111 the 100-day moving average, while extra bids will emerge at 11,698 the 50-day moving average.

In London the FTSE 100 adds 0.06% at 7,341, while CAC 40 is 0.29% higher at 5,634. In Wall Street, Dow Jones is 0.04 per cent higher at 27,150, the S&P is 0.16 per cent higher at 3,005 while Nasdaq is 0.33% higher at 8,196.Download our latest quarterly market outlook for our longer-term trade ideas.