We have a huge low volume area right underneath current price, with 12500 providing support for now. Breaking through that can open up the door to a decent pullback. From there it's likely that the bullish momentum can continue as investors look to buy the dip on the belief that European equities are still undervalued compared to US counterparts. The question to ask is whether there will be a dip.
The most obvious dip would be the closing of the gap from the weekend.
Watch the video to see the most interesting zones for today.
European markets were mostly muted early in the session on Tuesday as trade woes subsided somewhat following the G20 summit in Osaka, where China and the United States reached a truce in their lengthy trade dispute. US President Donald Trump said earlier that talks between the two countries were back underway, however, he insisted that a future trade deal with Beijing would have to be "somewhat tilted" in Washington's favour. In economic news, Destatis reported a drop in retail sales in Germany for the month of May, while Nationwide said British house price growth remained weak in June.
Turnover in retail trade in Germany increased 4% in May in real terms compared to the same month a year ago, according to provisional data released by the country’s statistical office Destatis on Tuesday. In nominal terms, retail sales rose 4.8% year-on-year. On a monthly basis, adjusted for calendar and seasonal variations, retail sales fell 0.6% compared to May in real terms and were down 0.4% in nominal terms.