DAX index ended yesterday lower in choppy trading ahead of the Christmas holiday with Wall Street indices closing to another record high yesterday. Improved trade relations between China and the USA would be beneficial for the global economy. In our economic calendar we don’t have any major release scheduled in Germany, euro area or US that might impact the markets.
During December the index added 0.41% while the last three months registered 7.77% gains. The index is 25.97% higher since the beginning of the year.
Yesterday. the Germany Import Price Index (month over month) came in at 0.5% above forecasts of 0.4% in November, the yearly reading for Import Price Index increased to -2.1% from previous -3.5%.
Major Central banks are continuing with the accommodative policy to support global equities. European Central Bank and the Fed kept rates unchanged in their latest policy meetings. Economist now expects that the Fed will keep the current interest rates throughout 2020.
Dax 30 ended yesterday 0.13% lower at 13,300 underperforming it’s US peers. The index is 25.97% higher since the beginning of the year as the index continues inside the ascending trendline which supports DAX since January 2019.
The momentum is positive despite some signs of exhaustion in the last trading session. On the downside, Dax initial support stands at 13,285 today’s session low. Next level on the downside for bears to watch is the 50-day moving average at 13,088. That area provided the rebound that send Dax to yearly highs. A break below that level might attract more sellers and the next target will be the 100-day moving average at 12,556.
On the upside, the immediate resistance is at 13,331 today’s and yesterday’s session top . Next level to watch is the yearly high at 13,425.85. A break above the YTD high will pave the way for a visit to 2018 highs at 13,596 from January 22nd 2018.