DAX is setting up for breakout

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DAX is setting up for the breakout of the massive consolidation pattern, having been built since June 2025. Despite the end of dovish monetary policy in the EU, inflation keeps steady around 2.3%. German bond yields have reached another peak, and stocks might attract some capital flows too, as yields are not expected to continue rising.

European stocks look like a balanced decision given the pressure on the US dollar and overheated AI sector. Before breaking to the new peak, DAX is supposed to test the 20-day moving average, as the probability of immediate continuation is relatively low.

Don't forget - this is just the idea, always do your own research and never forget to manage risk!

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