The Dax 40 bounces back as traders take profits ahead of another rate hike by the ECB. Sentiment has improved a bit after the bulls managed to push past 12670, prompting the opposite side to cover. The current phase of recovery will see whether there is enough follow-up interest in a sustained reversal. 12550 at the base of the breakout is a key support. A close above 12930 could pave the way for a rally back to 13200 then September’s high at 13500. A bearish breakout, however, would send the index back to 12320.
