DAX INDEX PAUSES ITS RAISES!
With COVID-19 restrictions still in place, the guarded unease about the German economy appears to have somewhat suppressed the rises on the index side. German 10-year bond yields increased by 3 basis points to -0.20%, the highest level since March 2020.
Pricing around 15,300 is also maintained in the DAX index, following indices that started the week slightly mixed with U.S. President Joe Biden's announcement that he plans to raise taxes on the rich. After the FOMC meeting, it is seen that the purchasing potential increases throughout the indices. On the U.S. side in particular, indices point to record highs, while the DAX index has lost slight strength with returns from 15,500.
One of the most important agenda items of the week for the index was the German government raising its growth forecast for 2021 from 3% to 3.5%. The government says it thinks COVID-19 restrictions could gradually decrease in the second quarter. It can also be said that the European Union's fiscal package of 800 billion euros has raised very optimistic expectations for the regional economy.
With the DAX index maintaining its image above 15,100, it can be expected to limit the short-term retreat momentum. Thus, we follow the resistance of 15,500 in the first place in the recovery that can be experienced. Due to the formation of above-this level pricing, rises can reach resistance levels of 15,900 and 16,300. However, in the downward scenario, the first crossing point will be the support threshold of 15,100. We continue to consider support levels of 14,750 and 14,400 depending on whether this level has been exceeded.