- Summary:
- DAX index is still within the rectangular pattern. Analysts have cut their forecast for Germany's economic growth from 4.7% to 3.7%.
DAX index has remained range-bound after the German CPI numbers failed to yield enough momentum for a bullish breakout. The data released earlier on Thursday’s session was at 0.5%, which matched analysts’ estimates. Besides, it was lower than February’s 0.7%.
Investors are now keen on the speech by Dr. Mauderer, who is an executive board member at the Deutsche Bundesbank. This comes at a time when key research institutes have lowered their forecast for the country’s economic growth.
According to the analysts, the GDP of the leading European economy is estimated to grow by 3.7% compared to the prior 4.7%. The downgrade is as a result of the sluggish vaccine program. However, the institutes’ outlook for 2022 economic growth is at 3.9%, up from 2.7%.
DAX Technical Outlook
The DAX index has remained on a rectangular pattern for over a week now. On Thursday, it was up by 0.37% at 15,242.0. While it is trading higher, it remains range-bound between 15,170 and 15,300.5. On a 4-hour chart, it is trading above the 25 and 50-day exponential moving averages. Based on these indicators, the outlook is rather neutral.
In my opinion, DAX is likely to remain within that range in the near term as the bulls gather enough momentum for a breakout. If successful the next level to look out for will be 15,400. On the other hand, a move below 15,170 will have the bears testing the psychological 15,000 mark.
DAX Index Chart
