NETH25 Index edges higher ahead of ECB meeting, more gains ahead?

NETH25 Index is trading close to it’s recent all-time high (~893) ahead of the European Central Bank’s (ECB) interest rate decision (12:15 PM UTC) and a subsequent press conference (12:45 PM UTC). 

The NETH25 Index tracks the performance of the 25 largest most actively traded stocks listed om Euronext Amsterdam exchange)

What could happen next?

The markets expect the ECB to leave the key rate unchanged at record-high 4% this time, while expecting the intertest rate cuts to begin as soon as in June this year.

EU’s central bank has already hinted at the possibility of rate cuts on the horizon but signified that more data is needed to confirm that inflationary risks are diminishing towards its target.
 

A lower interest rates may translate into European indices, including NETH25, moving higher.
 

However, a delay in the policy easing may extend pressure onto the markets.

Potentially sooner, as opposed to the US, policy easing in the Eurozone could also increase the appeal of the European stocks, including the components of the NETH25 index.

From the technical perspective…

• NETH25 is currently trading close to it’s all-time high (~893) and above the key simple moving averages (21, 50 & 100-period SMAs), underscoring strong upward momentum
   
• Relative Strength Index (RSI) positioned in the neutral territory (<30 – oversold, >70 – overbought), signifying the potential for further growth
   
• In case of a downturn an immediate support level is located at 21-period SMA, while to the upside the 893.1 is the key resistance – potential target for the NETH25 bulls