DAX index started the first trading session of 2020 on the positive foot. Dax adds 0.37% at 13,300 in thin liquidity conditions, getting support from upbeat Manufacturing PMI’s from Europe. The Germany Manufacturing PMI came in at 43.7 topping expectations of 43.4 in December. France Markit Manufacturing PMI came in at 50.4 beating expectations of 50.3.
From China the Manufacturing PMI came in at 51.5 below expectations of 51.7 in December. Chinese central bank (PBOC) said that it will cut the reserve requirement ratio by 50 bps as of 6 January.
Stocks around the globe cheered phase one deal between the U.S. and China. President Donald Trump said that phase one trade deal would be singed on 15 January.
Read our Best Trading Ideas for 2020.
Dax Index Technical Levels to Watch
Risk appetite drives Dax 30 index higher close to 12-month highs. The technical outlook is bullish for the Dax index and ttraders are focusing on higher levels.
On the upside, intraday resistance for Dax is at 13,309.53 today’s top. Next resistance level stands at 13,385 the high from December 27th which guards the 2019 high at 13,425.85.
On the other hand, immediate support for Dax 30 stands at 13,225 today’s low. The 50-day moving average at 13,127 will provide the next support level. A break below that level, might open the way for a move down to 12,884 the low from December 10th.
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