Dax Index Trades in Familiar Range as Brexit Deal Nears

Summary:

The Dax index was higher by 1.25% in early trading on Thursday after the U.K. and European Union appeared to have come to an agreement on Brexit.

The Dax index was higher by 1.25% in early trading on Thursday after the U.K. and European Union appeared to have come to an agreement on Brexit.

The U.K. Prime Minister is expected to announce a formal agreement this morning and this would put four and a half years of confusion to bed. News of a deal would also boost the Dax due to the interconnected nature of financial institutions and would put the markets on surer footing into 2021.

Any deal on Brexit would be slightly overshadowed by the fact that the recent spread of the virus has put much of the country on lockdown once more. Boris Johnson has announced that further counties in Southern England will enter Tier 4 and this will put the economy under pressure once more.

DAX Technical Outlook

The Dax index is back in a familiar range between the support at 13,315 and the resistance at 13,800. These will be the key levels going forward into year-end and could define the early path in 2021. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.