The DAX Index is wavering today ahead of a key speech by Christine Lagarde, the head of the European Central Bank (ECB). The index is trading at €13,930, which is slightly below this week’s high of €14,115.
What’s happening? In general, there’s no major economic and financial data moving the DAX Index today. Instead, investors are focusing on the upcoming speeches by Christine Lagarde and Joe Biden, the incoming president of the United States.
In her speech today, Lagarde will talk about the state of the European economy as the number of coronavirus cases continues to rise. She will also talk about the actions the ECB is prepared to take to cushion the economy from the pandemic.
However, she has limited options since interest rates are still substantially lower and that the bank is implementing a large stimulus package.
The DAX index is also waiting for a speech by Joe Biden about his stimulus plans. A larger-than-expected stimulus package will likely boost German stocks with a strong presence in the United States. This includes automakers like Daimler, Volkswagen, and BMW.
DAX Index technical outlook
The DAX index is trading at €13,918, which is slightly below the vital resistance level at €14,000. The pair has also formed a small ascending channel that’s shown in black. It is also slightly above the 25-day and 15-day exponential moving averages. Therefore, at this stage, the DAX will likely have a pullback as some investors take profit. It will then bounce back and soar above €14,000.
DAX technical chart