Dax Lower As Coronavirus Carnage Continues
Last week the ECB stunned the markets with an announcement of €750 billion asset purchases, in Christine Lagarde’s “whatever it takes moment”. However fiscal stimulus across the region has been overwhelmingly national. Germany today is expected to agree on an additional €150 billion in fiscal stimulus. There had been criticism aimed towards the German government for doing too little to stabilise the country. However, over the past 2 weeks the German government has reacted swiftly and is thinking big.
Eurozone consumer confidence data will be in focus later today. Analysts are expecting confidence to drop to -13 in March, down from -6 the previous month. The data comes after last week’s German IFO business climate index fell by the most since 1991, as coronavirus crisis takes its toll on confidence.
Dax levels to watch
Dax futures are trading at 8540, as the index faces another drop lower on the open. The futures have picked up from the low overnight 8018, however are struggling with resistance at 8612/20.
Immediate resistance can be seen at 8612 (today’s high/ 50 sma & 100 sma on 1-hour chart). A move above that strong resistance level could see more buyers come in and open the doors to 8804 (high 20th March) before 9100 (100 sma).
On the downside support can be seen at 7990 (low 19th March) prior to historical lows of 7800 (low June’13) and 7600 (low April’13).
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.
Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.
FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.
FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.
GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.
© FOREX.COM 2025