DAX and EUR/USD forecast: Lower energy prices, yields offer support

European equities are experiencing positive momentum, with Germany's DAX extending gains and the EUR/USD holding firm amid lower energy prices and declining bond yields. Falling oil prices, aided in part by geopolitical peace talks brokered by Pakistan, have eased inflationary pressures and pushed longer-dated US Treasury yields down by approximately 10 basis points over the past week. This backdrop has bolstered risk appetite and kept the US dollar under mild selling pressure ahead of key macroeconomic events, including the US core PCE inflation release, Nvidia's second-quarter earnings report, and Fed Chair Kevin Warsh's speech at Jackson Hole. Technically, the DAX has maintained strong support at the 25,920/25 area and trades above its 21-day exponential moving average. Having cleared resistance at 26,200, the index is targeting 26,440 and its all-time peak of 26,581. Meanwhile, EUR/USD is consolidating after reaching 1.1700, with support held above the crucial 1.1575–1.1625 region, maintaining a bullish bias.