The Dax index is 0.34% higher on the day as stock indices see continued momentum. The German blue-chip index is trading at 13,712 with the February pre-virus highs at 13,800.
The Dax has moved higher despite the headwind of a higher Euro, with the single currency powering higher to 1.2260. The index was boosted by a higher IFO business climate number from the German economy. Markets had expected a reading of 90 but the actual figure was 92.1.
Today sees a quad witching day in the stock indices and this could lead to volatility into year-end as institutions adjust their portfolios ahead of a fresh year ahead. Many analysts are forecasting a vaccine-led recovery in 2021 and there is a risk that the theme is now priced-in to markets.
Dax Technical Outlook
The Dax rallied above the 13,315 level and is now close to the 13,800 highs from February. This will be the key level in the days ahead and support will be back at the 13,315 price. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.