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DAX Index Bulls Might Challenge 13,470 On Dovish Fed Projections

Dax Index
Dax Index

Dax index trades almost unchanged as investors are cautious ahead of the Fed monetary policy decision and Powell’s press conference later on the day. Fed expected to keep interest rates unchanged today but will change its future projections for the U.S. economy. 

ZEW continues to shows signs of improvements. The Germany ZEW Survey Economic Sentiment reported yesterday at 77.4, beating the expectations of 69.8. The Current Situation ZEW Survey showed substantial improvement at -66.2, above the estimates of -72 in September, the previous reading was at -81.3. 

European Commission: Fiscal Support Will Continue

European Commission’s (EC), Ursula von der Leyen, said in her State of the Union speech that this is not the time to withdraw the fiscal support to the EU economy. She also added that the current situation is an opportunity to make structural reforms and complete the banking and capital markets union. 

In corporate news, Lufthansa announced that it would further cut its aeroplane fleet by 130 planes, that is 30 more planes than its previous plan. SAP, RWE and Adidas are among the top performers, while MTU, Covestro and Allianz are the bottom performers. 

Dax Index Daily Technical Analysis

Dax index continues the consolidation for the second day as traders don’t want to get much exposure ahead of the Fed decision. The index keeps the upward momentum intact even the pace has slowed down. 

Resistance for the Dax stands at 13,250 the daily high. Next obstacle stands at 13,342 the high from September 14. More offers would emerge at 13,470 the top from September 3.

On the other hand, support for the index is at 13,122 the low from yesterday’s trading session. Strong support would provide the 50-day moving average at 12,916. If the bears break that support, the next target would be 12,641 the low from August 21. 

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Dax Index Daily Chart