Dax index touches fresh all-time highs as the coronavirus fears ease and despite weak economic data. The partial opening of factories and business in China improved investors sentiment as the number of confirmed cases and deaths rising but at a slower pace. On Monday there are over 41,000 confirmed coronavirus cases and the death toll is over 1016.
Analysts now bet on further easing from ECB. Deutsche Bank forecasts that the coronavirus crisis will likely cut off 0.2% of Germany’s first-quarter GDP. ECB President Christine Lagarde, will speak later and might shed more light on current conditions and on the ECB’s futures move. The central bank is conducting its strategic review, targeting to conclude it in July 2020.
Dax index trading 0.81% higher at 13601 having hit earlier the daily high at 13638, just two points away of the all-time high. The momentum is clearly bullish for the index and fresh highs look possible.
On the upside, the first resistance for Dax 30 index stands at 13,638 today’s high. Record high at 13640.06 is the next resistance area. A break above would target the 13700 psychological resistance.
On the downside, initial support for the Dax stands at 13594 the daily low. A break below would open the way for the next support level at 13445 the low from yesterday’s session. The 50-day moving average at 13307 will offer the next support point.