The Dax index is struggling to breach resistance at the 13,315 level as the Euro powers higher against the U.S. dollar. After breaking above yearly highs at 1.2000 on Tuesday, the euro is now trading at 1.2165 with no sign of letting up. The picture may change next week when the European Central Bank meets to discuss interest rates.
The Dax is also lagging behind the FTSE this week as the U.K. index reacts to the approval and rollout of the Pfizer vaccine in the country. Markets could begin moving on each countries ability to administer vaccines to the most vulnerable in the population.
Germany’s extension of its lockdown into December 20th has also been a factor in the Dax stocks. If the Eurozone don’t approve a vaccine soon then it could be a bleak winter for German stocks as a stronger euro meets slower economic growth expectations.
Dax Technical Outlook
The Dax is finding the 13,315 level to be stubborn as the index pulls back from a week of testing that level. If the Dax can see further strength then the 13,800 pre-virus highs are the next resistance. First support would come in between 13,000 and the 50-day moving average at 12,800. 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 Daily Chart
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