The Dax 40 consolidates ahead of the ECB interest rate decision later this week. The price action has been treading water over last March’s low near 12420, which suggests interest in keeping the index from dipping into bearish territory. However, the buy side needs to show stronger commitment to turn sentiment around. A rally above the psychological level of 13000 may attract more follow-up buying. On the downside, a fall below 12680 would send the index back to the bulls’ last stronghold at 12420.
