DAXEUR

The DAXEUR pair started the week with PMI data from Germany and the US. While the contraction in the manufacturing sector continues, optimism in the services sector is noteworthy. The contraction in Germany is increasing expectations for an aggressive interest rate cut by the ECB, while officials maintain a cautious stance. In the US, the growth rate in the services sector and positive data have turned the market's attention to the Fed's upcoming interest rate decision and Chairman Powell's messages. Additionally, today, Germany's ZEW Economic Sentiment and US Core Retail Sales data will be monitored.

Technically, the DAX40 index maintains its positive trend above the 50-period average at the 20280 level. Resistance levels at 20570, 20660, and 20785 are being watched in the upward trend. Particularly, sustainability above the 20660 – 20700 Fibonacci region could carry the upward trend to the 20960 zone. In downward movements, the 20470 level is a critical support position. The RSI indicator is at 60 and supports the positive bias. It is observed that the index recorded a 0.30% decline during the day.