DAX Xetra (cash index)
The bullish technical uptrend channel has been kept on track this morning as the news over agreement between the US and EU over trade has resulted in a sharp positive gap higher in the export-heavy DAX at the open.
The move has completely flipped what had threatened to be a breakdown in the trend channel, leaving a support at 12,538 and the market is challenging recent resistance once more.
Technically this has been a bit of a messy run of candles over the last week on the DAX but in front of the ECB meeting today the resistance at the pivot of 12,780 is again being tested.
Momentum indicators are hinting at an improving outlook, with the RSI edging higher above 50, MACD lines marginally higher and Stochastics ticking back up again.
However a closing breakout above 12,780 needs to be seen in order to open the next phase of upside within the uptrend channel.
Watch for the RSI above 60 to confirm a renewed sense of bullishness too.
Hourly chart momentum is fairly mixed on configuration and exactly how the market deals with the pivot will be key.
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