The DAX records highest level in 15 months

DAX hits new peak for 2023

After the Easter holiday, the German DAX index has experienced a significant boost following statements made about future interest rates. At an IMF meeting, Bundesbank board member Bostian Vasle indicated that the European Central Bank is contemplating a 25 basis point increase in interest rates during their upcoming May meeting. He also mentioned that although core inflation is decreasing, it is still not meeting the bank's target levels and is moving in the opposite direction.

German statistics office data showed a slowdown in inflation on an annual basis in March, recording 7.4%, compared to the previous reading of 8.7%. On the other hand, the eurozone saw some stability as factory production in Germany jumped significantly in February, outperforming market expectations. This reinforced expectations that the largest economy in the eurozone will avoid a recession.

The index started the last session of the week with a slight increase, trading near 15,806.

Pivot levels for the index

The German DAX index managed to surpass the resistance level of 15,700 points, which represents a strong price resistance zone. If the index remains above this level, its rise may extend to test the resistance level of 16,000 points, and if it surpasses it, the rise may continue to test the strongest resistance around 16,270 points.

In addition, the index is moving within an ascending channel on the daily frame and has rebounded from its lower limit. It is likely that its rise will extend to test the upper limit of the channel around the 16,300 point level.

The support level for the index is 15,700 points, and it is important for prices to remain above it to demonstrate an upward trend. However, if the index falls below this level, its decline may extend to test the 15,480 point level, and if it breaks this level, its decline may extend to test the lower limit of the ascending channel around the 15,200 point level.