Additionally, traders should track Federal Open Market Committee (FOMC) members throughout the Tuesday session. Insights into inflation trends and timings for potential Fed rate cuts could influence buyer demand for rate-sensitive German stocks. FOMC member Jeffrey Schmid is on the calendar to speak.
Near-Term Outlook
The DAX’s near-term trend hinges on US inflation data, central bank commentary, and US tariff developments. Hotter-than-expected inflation or fresh tariff threats could drag the DAX toward 19,750. However, softer inflation and tariff relief could drive the DAX toward its record high of 20,523 on central bank rate cut expectations.
As of Tuesday morning, the Nasdaq-mini futures gained 88 points, leaving German stocks in the hands of US inflation data.
DAX Technical Indicators
Daily Chart
Following the positive open, the DAX sits comfortably above the 50-day and 200-day Exponential Moving Averages (EMAs), affirming bullish price signals.
If the DAX returns to 20,350, the Index could target its record high of 20,523 next. A break above 20,523 would bring 20,750 into sight.
Conversely, a DAX drop below 20,000 could enable the bears to target the 50-day EMA. A fall through the 50-day EMA could signal a drop toward the 19,675 support level.
With the 14-day Relative Strength Index (RSI) at 57.90, the DAX could revisit its 20,523 record high before entering overbought territory (RSI higher than 70).
