The European Union has agreed to tighten its asylum policy. Chancellor Angela Merkel welcomed the agreement. Whether the summit resolutions are sufficient to settle the fierce coalition dispute between Merkel’s CDU and the sister party CSU remains unclear.

Interior Minister Horst Seehofer (CSU) had previously threatened to reject at the German borders asylum seekers who are already registered in another EU country. Merkel absolutely wanted to prevent this with a European solution. The EU shows its capacity to act and this will relieve tensions in the financial markets, particularly on the DAX as we are seeing this morning.

At the time of writing, the DAX 30 is currently up 113 points (or 0.93%). We see a 32 point gap this morning and high of 12344 (CFD). In the premium channel, I was discussing some expectations regarding price action and the 12360 level was a prediction I made. So we’re a few points short of that right now. But there is still time.

Technically, the DAX 30 remains bearish below 12440, although we are expecting for the price action to challenge those levels today, based on the positive news from the EU summit.

29-06-2018 Dax 4m Chart

The 29-06-2018 Dax TPO

29-06-2018 Dax 240m Chart

Keep an eye out on this reaction line