Risk On Sentiment Boost DAX Index at Two Year Highs
Dax index trades 0.69% higher at 13,557 as traders cheer the signing of the phase one trade deal between China and USA. Better economic data out of China also boosts investors sentiment. Chinese Gross domestic product increased by 6.1%, down from 6.2% in 2018, while the annualized rate of growth drop to 6.0% in the 4Q. The China Retail Sales came in at 8% topping expectations of 7.8% in December.
Yesterday, the German Consumer Price Index came in at 0.5% in line with estimates in December, while the yearly CPI reading came in 1.5% also in line with expectations. The German BDI industry association downgraded the forecast of economic growth to 0.5% this year due to the pressures in the manufacturing sector.
Dax index resumed the rally today and hit fresh two year highs as the bullish momentum refuelled by risk-on sentiment as the investors continue to bid on risky assets.
On the upside, the immediate resistance for the index stands at 13,557 today’s high. The record high from January 23rd 2018 at 13,596.89 is the next active supply zone. While the next resistance will be met at 16,600 psychological mark.
First support for the DAX index will be met at 13,500 today’s low. If the DAX index pierces that level, the next support zone stands at 13,366 the low from January 14th. A trend changer point is the 50-day moving average at 12,245. If bears surpass that level the next hurdle is at 12,949 the low from January 6th.