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- Dax index prepares for an assault on the 15,000 level and beyond as the world celebrates the new fiscal stimulus in the United States. ECB today is key.
Dax index eyes 15,500 and beyond on the back of new stimulus in the United States and a bullish breakout. The ascending triangle that broke recently puts a positive light on the Dax performance, as the measured move suggests a target beyond 15,500.
For those wondering what does the fiscal stimulus in the United States has to do with a European stock market index, the answer lies in the spillover effects. The size of the stimulus is so big that it will positively impact the economies of America’s main trading partners.
Coming to Europe, today is the ECB day. Europe lags the United States both in terms of the speed of the vaccination campaign and in terms of the fiscal response. Moreover, financial conditions have tightened in Europe on the back of higher U.S. Treasury yields. As such, the ECB may signal today more easing, or at least may align its communication so to suggest it stands ready to use the full envelope of the PEPP – maybe even signaling a commitment to do so.
Dax Index Technical Analysis
The key to the ascending triangle was a close above the horizontal line. Now that we have such a close, the thing to do is simply to remain on the long side for the measured move. Bears will like to have a stop at 13,900 and target a move to 15,500 and beyond.
Dax Index Price Forecast
