DAX Index Trades Lower after Trump Speech Disappoints

DAX Index trades lower today giving up 1.00% at 13,150 after Germany Consumer Price Index (month over month) came in at 0.1% in line with forecasts for October, the yearly reading came in at 1.1% also in line with forecasts. The Harmonized Index of Consumer Prices (year over year) came in at 0.9% in October, matching expectations.

President Trump said yesterday that China-US trade deal might happen soon and the phase one agreement is close, but he also said that if a deal isn’t reached the US will raise tariffs. Meanwhile escalating violent protests in Hong Kong also weigh on equities around the globe.

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Dax Index Support and Resistance

DAX index is under heavy selling pressure today as investors dump risky assets ad turn to safe-haven assets such as old and Yen. Despite today’s correction the bullish momentum is still intact as the Dax index retreats from yearly highs but trades above all major daily moving averages and inside the ascending channel which started back in December 2018. Dax index is trading in overbought level as the RSI 14 hovers at 73.21 a level that might trigger profit-taking.

Traders are more cautious today and focus on the downside, where first support for DAX index stands at 13,139 today’s low, while sellers below that level will target the 13,000 mark where the ascending channel provides support. Next support level for DAX index stands at the 50-day moving average at 12,570.

On the upside immediate resistance stands at 13,273 today’s top, a convincing break above that level might drive the index up to 13,368 the high from January 29th, 2019. Bulls control the momentum for Dax index as long as the index trades inside the ascending channel which started back in December 2018.

In London the FTSE 100 is 0.53% lower at 7,326 as the pound trades at 1.2848,  CAC 40 is 0.48% lower at 5,891. In Wall Street, Dow Jones futures, are 0.38 per cent lower at 27,56, the S&P 500 is 0.40 per cent lower at 3,079 while Nasdaq is 0.50% lower at 8,256.More content