Auto stocks extended the gains from the Monday session. Volkswagen gained 1.61%, with BMW and Mercedes Benz Group advancing by 1.08% and 1.08%, respectively. Porsche ended the session up 0.25%.

German Producer Prices, Eurozone Consumer Confidence, and the ECB

On Wednesday, German producer prices will draw investor interest early in the European session. Economists forecast producer prices to decline by 3.8% year-on-year in February after falling 4.4% in January.

However, economists expect producer prices to fall by 0.1% month-on-month after rising by 0.2% in January. A fall in producer prices would signal a weak demand environment and support bets on a June ECB rate cut. Bets on an H1 2024 ECB rate cut remains a tailwind for the DAX.

Later in the session, Eurozone consumer confidence numbers also need consideration. Economists expect the Consumer Confidence Index to increase from -15.5 to -15.0. However, barring a marked increase in the Consumer Confidence Index, the numbers are unlikely to influence sentiment toward an H1 2024 ECB rate cut.

Away from the numbers, ECB President Christine Lagarde and Chief Economist Philip Lane are on the calendar to speak.

Views on the economic outlook, inflation, and the timeline for interest rate cuts could move the dial.

There are no economic indicators from the US to consider. However, investors will be mindful of the FOMC interest rate decision, projections, and press conference after the European closing bell.

Short-term Forecast

Near-term trends for the DAX will hinge on inflation and wage growth trends for the euro area and the Fed interest rate decision.

Sticky inflation, upward trends in euro area wage growth, and a hawkish Fed could test buyer demand for DAX-listed stocks.

In the futures, the DAX and Nasdaq mini were down 22 and 25 points, respectively.

DAX Technical Indicators

Daily Chart

The DAX remained well above the 50-day and 200-day EMAs, affirming the bullish price signals.

A DAX return to the March 14 all-time high of 18,039 could give the bulls a run at the 18,200 level.

Euro area economic indicators and ECB chatter warrant investor attention.

Conversely, a drop below the 17,900 handle could signal a fall to the 17,750 handle.

The 14-day RSI at 76.17 shows the DAX in overbought territory. Selling pressure may intensify at the March 14 high of 18,039.

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Infamous gold bug Peter Schiff recently took to X (formerly Twitter) to predict a major Bitcoin (BTC) price crash. 

The largest cryptocurrency has so far dropped 12.9% from its all-time high of $73,737 which was achieved on March 14.

Has Bitcoin peaked?  

Schiff recalled a trend during which many proponents of Bitcoin were adding laser eyes to their social media profiles. This happened at the peak of the bull market euphoria in 2011. The somehow cringe-worthy trend involved major celebrities and even politicians like Wyoming Senator Cynthia Lummis.

The trend attracted a lot of mockery after the price of the flagship cryptocurrency crashed the following year, retracing all the way back to the $16,000 level in November 2022.

This serves as a cautionary tale about excessive exuberance in the crypto market.

Schiff also expressed skepticism toward much-hyped spot Bitcoin ETFs, which have experienced tremendous success since their launch in January.

The gold proponent is convinced that their streak of record-breaking inflows is now going to last, and Bitcoin is going to experience a sharp reversal after recording substantial gains in 2024.

Moreover, Schiff has downplayed the impact of the upcoming Bitcoin halving, which many analysts expect to be another bullish catalyst for the leading cryptocurrency.

Extreme greed

It is worth mentioning that the Crypto Fear and Greed Index, which provides a score of 0 to 100 in order to gauge market sentiment, is still flashing “extreme greed” at 79 despite the fact that the price of the largest cryptocurrency has retraced substantially from its recent peak.

At press time, Bitcoin is trading at just $64,410 after shedding 5.5% over the past 24 hours.

Roughly $442 million worth of long positions have been liquidated over the past 24 hours, according to CoinGlass data. 

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Finance Magnates CY Limited

GBPUSD generates fresh 2024 peak.
But declines sharply towards the 50-day SMA.
Momentum indicators weaken significantl.

GBPUSD has been stuck in a rangebound pattern since mid-November, unable to adopt a clear directional impetus. Although the pair exploded higher and posted a fresh seven-month high after conquering the 50-day simple moving average (SMA), it quickly reversed back within its neutral structure.

Should bearish pressures persist, the pair could violate the 50-day SMA and challenge the March support of 1.2598, which lies very close to the 200-day SMA. A dive below that region could open the door for the 2024 low of 1.2517. Further declines could then cease at 1.2445, a region that provided both support and resistance throughout 2023.

On the flipside if the pair reverses back higher, the December resistance of 1.2793 could prove to be the first barricade for the price to overcome. Surpassing that zone, the price may test the June 2023 peak of 1.2847. Even higher, the recent seven-month peak of 1.2892 could come under scrutiny.

In brief, GBPUSD remains a prisoner within its sideways range as its latest upward spike encountered solid resistance. Therefore, the technical picture could deteriorate further in case of a downside violation of the 50-day SMA.

Origin: XM

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