DAXEUR

Europe's leading index DAX is hovering just below the pivot level of 23,755.30 points, awaiting a heavy flow of data that will determine global risk appetite. This week, there are two main focal points for the index: Thursday's ECB interest rate decision and press conference, along with the U.S. inflation data throughout the week. It would be the most favorable scenario for the index if the ECB keeps rates steady and President Lagarde delivers dovish (pro-loose monetary policy) messages during the press conference. Additionally, if U.S. inflation data aligns with expectations, it would boost global risk appetite. In this positive environment, it is likely that the DAX could break through the resistance at 23,825.79 and rally towards 24,030.38. However, unexpected hawkish statements from the ECB and persistent high U.S. inflation keeping interest rate hike concerns alive could trigger a wave of selling on the indices. In this case, the support at 23,481.71 would be the first stop, while a deepening sell-off could test the level of 23,342.21.