The Dax index has retreated from a move higher to test the September resistance levels around 13,315. Friday will see the release of another Q3 GDP estimate for the Eurozone.
The DAX has rallied this week on the news of a potential coronavirus vaccine from U.S. drugmaker Pfizer. The early buzz over these headlines is starting to dissipate in stocks as investors factor in the logistics of delivering enough vaccines to end the current lockdowns in Europe. In the U.S. Joe Biden has said his first goal would be to lock down the U.S. again and this would be in February.
Today’s GDP estimate for the European economies is a gain of 12.7% Q-on-Q after a loss of 11.8% in the second quarter. The year-on-year number is expected to see a loss of -4.3%. The new set of lockdowns enforced in Europe will now dent the fourth-quarter growth numbers so traders are looking beyond the Q3 release already.
The Dax would ideally see a close above the September resistance the week in order to stay in a bullish posture. With virus cases still rising rapidly across Europe and the U.S., traders may be getting ahead of themselves with the recent price gains, and a negative vaccine headline could bring further selling in indices.
Dax Index Technical Outlook
The Dax index has retreated from the 13,315 resistance level, which capped gains in September. This will be the key obstacle for bullish traders in the coming sessions. If the Dax were to move lower then the 50-day moving average will be the first target near 12,700. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Dax Index Daily Chart
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