DAX Index at Yearly Highs On Brexit Deal Hopes

Summary:
• DAX Index continues higher for sixth consecutive trading session making yearly highs as positive headlines crossing the wires, suggesting that a Brexit

DAX Index continues higher for sixth consecutive trading session making fresh yearly highs as positive headlines crossing the wires, suggesting that a Brexit deal is possible. EU Negotiator, Michel Barnier, told EU commissioners that he is optimistic about getting a Brexit deal with the UK by the end of the day. The economic data came mixed today as European Monetary Union Consumer Price Index (year over year) came in at 0.8%, below forecasts of 0.9% in September, the monthly Consumer Price Index reading came in at 0.2% in line with forecasts. European Monetary Union Trade Balance n.s.a. registered at €14.7B, below forecasts of €17.5B in August. DAX index has gained over 11% since the August lows and 19,92% in 2019.

Dax index is 0.28% higher at 12,664 having hit the daily low at 12,603 and the daily high at 12,675 boosted by Fresenius SE +2.27%, Volkswagen AG Non-Vtg Pfd. +1.66% Wirecard AG +1.47%, MTU Aero Engines AG +1.51%, Linde PLC +1.35%, and Deutsche Bank AG +1.02%.

Dax Index Technical Analysis

Yesterday in our DAX Index Bulls Now Target Yearly Highs article we mention that DAX bullish momentum will drive the index to fresh yearly highs. Today’s move just reaffirms the recent positive momentum which started from August 15^th lows (11,275) as the index breached the 50-day moving average and the 100-day moving average the last trading sessions. On the upside where traders shifted their attention, the immediate resistance is at 12,675 today’s high, a convincing break above might drive prices up to 12,970 the high from June 18th. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018. On the downside, immediate support for DAX index stands at 12,603 today’s low, while sellers below that level will target the 100-day moving average at 12,146. Next support level for index stands at the 50-day moving average at 12,065.

In London the FTSE 100 gives up 0.05% at 7,207 as the pound trades at 1.2826,  CAC 40 is 0.11% lower at 5,695. In Wall Street, Dow Jones futures, are 0.15 per cent lower at 26,964, the S&P 500 is 0.16 per cent lower at 2,993 while Nasdaq is 0.23% lower at 7,941.