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Beyond the data, Fed speakers and US tariff developments remain key drivers for sentiment.
Near-Term Outlook
The DAX’s near-term direction hinges on:
- German fiscal policy: Progress on a defense fund and stimulus measures could support the Index.
- US-China tariff risks – Escalating trade tensions may pressure global equities.
- Central bank policy – Dovish ECB or Fed signals could boost risk appetite.
Progress toward a sizeable defense fund, rising tariff risks, and more dovish central bank guidance could drive the DAX toward 22,750.
However, resistance to loosening Germany’s debt break, rising trade war risks, and hawkish central bank policy stances may drag the Index toward 22,000.
As of Wednesday morning, the DAX mini was up 138 points, while the Nasdaq 100 mini gained 106 points, signaling a positive start to the Wednesday session.
DAX Technical Indicators
Daily Chart:
After this week’s early gains, the DAX remains well above the 50-day and 200-day Exponential Moving Averages (EMAs). While holding above key moving averages, increasing volatility indicates potential short-term downside risks within the broader uptrend.
A breakout from 22,500 could support a move toward the February 19 record high of 22,935 into sight. A return to 22,935 may enable the bulls to target 23,000 next.
Conversely, if the DAX breaks below 22,350, 22,000 will be the next key support level.
With the RSI at 64.17, the DAX remains below overbought levels (above 70), potentially allowing further upside toward the 22,935 high.
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