The DAX surged by 1.33% to close at 11657 on Wednesday as the European Union proposed a €750 billion stimulus plan to boost the region’s economy. The long-awaited stimulus package alongside the prospects of economies gradually reopening averts market’s attention from US-China tensions which could possibly derail the rally in the DAX. Apart from headlines on US-China relations, markets will look to US jobless claims to test the resilience of the bulls. The DAX has steadily risen to close the March down gap which brings the 200-day MA around 12100 into view. A move above 11830 would enable an advancement towards the 12000 resistance followed by 12100. We can expect to see some short-term weakness in the case that price pushes below the 11560 level near the 20-period MA to target lower levels at 11340 and 11200.
Support: 11560 / 11340
Resistance: 11830 / 12000
