The Dax hit our short entry support target at 12800 as economic data took a backseat to increasing US-China tensions amidst consulate closures and spying allegations. Progress in the EU recovery fund will and hopes of a quick recovery in Europe is keeping the index supported as investors focus on Germany’s IFO Business Climate Index to be released today. With the index printing below the 200 period SMA and the 13000 resistance level, further downside is favorable with on a breach of the 12800 support level.
Support: 12800/ 12600
Resistance: 13000 / 13135
