DAX Technical Analysis: The German stock market touches a new all-time high, breakout eyed
KEY POINTS:
- DAX touches a new all-time high
- Breakout of the 2025 range in focus
- Positive risk sentiment is providing support amid Fed’s easing, neutral ECB
FUNDAMENTAL
OVERVIEW
The German DAX touched a
new all-time high today but couldn’t sustain the breakout of the 2025 range. There
was strong optimism in the first half of 2025 due to the German fiscal stimulus,
but the enthusiasm eventually faded and the index remained stuck in a big
range.
The German economy is
expected to gradually pick up in 2026 according to the German central bank, but
the real risk this year is going to be the ECB. In fact, despite the
expectations of the European Central Bank to keep interest rates steady
throughout 2026, there is a risk flagged by ECB’s…
