DAX supported by Draghi

By FXStreet The German DAX surged by 245 points or 2.67%, closing the day at 9,206.84, as European equities followed Asian markets in their way higher. Also supporting local shares were ECB’s President Mario Draghi comments, who said that the Central Bank “will not hesitate to act” if needed to boost the local economy, in their next March meeting.

DAX technical perspective

“The sharp advance in European hours stalled after the close with volumes reduced to their minimum given the US holiday, and the index consolidates near its high early Asia, with the daily chart showing that the index is still far below its moving averages, and that the Momentum indicator has lost upward strength well below its 100 level, suggesting that so far, the movement is just corrective”, said Valeria Bednarik, chief analyst at FXStreet. “Nevertheless, and according to the 4 hours chart, the rally can extend, as the index is now above a bullish 20 SMA, while the technical indicators are turning north within positive territory after a consolidative stage, particularly on an advance beyond 9,280, a major static resistance level”.

Support levels: 9,125 9,042 8,966. Resistance levels: 9,280 9,334 9,418.
For more information, read our latest forex news. …read more

Source:: FX Street