Dax index started the day with a gap up and continues in positive territory for the second day in a row as investors digest the relief packages announced by many countries around the globe. The German finance ministry reiterated that would take all necessary measures to combat the coronavirus outbreak.
The ministry also discuses the direct aid for very small companies. Germany’s Institute for Employment Research (IAB) expect now the country’s GDP to decline by 2% in 2020, amid the coronavirus outbreak. The number of confirmed coronavirus cases in Germany rises to 13,957, and the deaths increased by 11 to 31.
The European Monetary Union Current Account came in at €34.7B below the expectations of (35.5B in January.
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Dax Index Technical Analysis
Dax index is 4.05% higher at 8,952, as investors return fro some bottom fishing. Despite today’s rebound, the Dax technical picture is bearish, and lower levels might be on the cards. Dax is hovering in oversold level as indicated by the RSI (14) at 23.75, so we can’t rule out that the index might continue higher.
On the upside, first resistance for index stands at 9,201 the daily high. A move above might test March 13 highs at 9,970. A move higher might challenge 10,743 the high from March 11th trading session.
On the flip side, initial support for Dax stands at 8,921 the daily low. In case the pressure continues, the next support zone stands at 8,241 the low from yesterday’s session.
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