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DAX 40 Daily Price Analysis – Anticipation Builds for CPI Data and ECB Meeting Insights

  • 3 mins read ●
  • Published:
dax30 germany market analysis 2

Key economic data releases, including the US CPI report, are highly anticipated, with expectations of a slight increase in the US annual inflation rate potentially affecting market expectations and the DAX-listed equities demand.

Key Points

  • On Tuesday, the DAX 40 index declined by 1.32%, closing at 18,077.69.
  • The DAX 40 rebounded by approximately 0.8% to 18,222.25 early on Wednesday, driven by optimism ahead of crucial US CPI data and FOMC meeting minutes.
  • Eyes on 18,346.59 for a bullish cue, 18,252.94 for a bearish signal.

DAX 40 Daily Price Analysis – 10/04/2024

On Tuesday, the DAX 40 index faced a downward trajectory, closing at 18,077.69, a decline of 1.32% from the open at 18,318.40. The drop can be attributed to a blend of factors, including global market sentiments, shifts in investor focus, and economic data releases that impacted market liquidity and investor confidence. 

However, today marked a significant rebound, with the DAX climbing approximately 0.8% to reach 18,222.25 from the opening price of 18,171.78. This uptick reflects a resurgence of optimism among investors, driven by anticipations surrounding key economic indicators and policy decisions.

The rebound in the DAX index today is closely tied to the broader market sentiment, awaiting crucial data releases such as the US CPI and the minutes from the FOMC meeting. Investors are keen on deciphering the Federal Reserve’s policy direction, particularly in the wake of recent economic developments. 

Additionally, the ECB’s stance on interest rates, amidst weak demand for credit attributed to high-interest rate levels and subdued fixed investment needs among euro-area companies, has been a focal point. With the ECB meeting looming, the market is on edge, anticipating potential signals towards a June interest rate cut, albeit amidst fears of a possible hawkish pivot.

Key Economic Data and News to Be Released Today

With no significant economic statistics expected for Germany or the Eurozone today, the focus is squarely on the US CPI report and the ECB’s forthcoming meeting. With expectations set for the US annual inflation rate to inch up from 3.2% to 3.4%, albeit with a projected slight dip in core inflation from 3.8% to 3.7%, the outcome could significantly sway market expectations regarding the Fed’s interest rate trajectory.

A hotter-than-anticipated inflation figure might temper hopes for a June Fed rate cut, potentially influencing demand for DAX-listed equities. In light of these developments, comments from ECB members and the FOMC’s Michelle Bowman and Austan Goolsbee will be closely monitored for insights into the timing of future rate adjustments.

Visit our Economic Calendar

DAX 40 Technical Analysis – 10/04/2024

With the price grappling with the intraday 200 EMA and the RSI edging toward the overbought territory, traders are left with mixed signals regarding the index’s short-term trajectory.

dax 40 15m chart
DAX40 15M Chart – 10/04/2024

A decisive break and close above the resistance level at 18,346.59 would serve as a bullish confirmation, potentially triggering a new leg up for the index. Conversely, a break and close below the pivot point at 18,252.94 could open the door for bearish opportunities.

DAX 40 Fibonacci Key Price Levels 10/04/2024

Short-term traders planning to invest in Dax 40 today should keep a close eye on the following key price levels for the day:

SupportResistance
18159.3018346.59
18101.4418404.45
18007.7918498.09

Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.

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