The DAX index has been on an upward trend for 6 months but after a retreat in April as risk sentiment deteriorated, it’s under consolidation. The price experienced a decline in the first half of April but has been range-bound for the past two weeks, fluctuating between two moving averages.

Dax has been finding support at the 50 SMA (yellow) at the bottom since it pulled back lower in April, while and the 20 SMA (grey) has been acting as resistance at the top.  The DAX retreated a couple of times last week, falling by 0.20% on Wednesday, after experiencing a 1% retreat on Tuesday, falling below the 18,000 level.

Dax Chart Daily – The Lows Are Still Getting Higher

However, on Thursday, investors reacted positively to the FOMC’s rate decision and press conference after Fed Chair Powell expressed concerns about the lack of progress in achieving the inflation target. Additionally, Fed Chair Janet Yellen dismissed rumors suggesting that the Fed might raise interest rates to curb expenditure and demand-driven inflation.

On Friday, French banks Société Générale reported a smaller-than-expected decrease in first-quarter profit, while Crédit Agricole witnessed an increase in net profit.