DAXEUR

Europe's leading index DAX is hovering just below the pivot level of 23686.30 points, awaiting a heavy flow of data that will determine global risk appetite. There are two main focal points for the index this week: the ECB's interest rate decision and press conference on Thursday, along with the US inflation data throughout the week. The most favorable scenario for the index would be if the ECB keeps interest rates steady and President Lagarde delivers dovish (supportive of loose monetary policy) messages during the press conference. Additionally, if the US inflation data aligns with expectations, it would boost global risk appetite. In this positive environment, it is likely that the DAX will break the resistance at 23825.79 and rally towards 24030.38. However, unexpected hawkish statements from the ECB and persistently high US inflation keeping interest rate hike concerns alive could trigger a wave of selling in the indices. In this case, the support level at 23481.71 would be the first stop, and if selling deepens, the 23342.21 level could be tested.