Dax Index Looks for Catalyst to Press Pre-Virus Highs
The Dax index is trading higher on Monday as Euro strength versus the dollar fades. The German stock index is looking for a move higher above the current resistance to test the 13,800 February highs.
The week ahead could be a volatile one for the Euro with Brexit talks at an important crossroads and the latest meeting of the European Central Bank on Thursday to announce the interest rate and monetary policy. The bank are likely to announce further stimulus and could attempt to adjust the euro lower after being critical of its deflationary influence in recent months.
A weakened euro would help push the Dax higher after an extension to the current lockdowns took some of the steam out of the index. The vaccine rollout begins in the UK this week and this will also put pressure on European regulators to approve the release not be left behind in re-opening economies.
Dax Index Technical Outlook
The Dax has been pressing the 13,315 level for the best part of a week and is moving higher today. A strong close above the 13,400 price level would likely see a test of the 13,800 resistance, which was the pre-virus high in February. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.