European Focus: DAX and EURUSD
A quiet day in terms of major economic data, but nevertheless markets are moving. Again the focus is corona virus and it's spread. Furthermore in the next days we will see how it impacts the major world economies. Tomorrow we have a series of PMI data which could potentially affect the markets discussed in this article. But let's focus on today.
Earlier today the EURUSD moved higher towards the resistance level of 1.0777. It retreated from there to trade below 1.0700 at the time of writing. A strong support has formed around 1.0635, and we shall see if continued USD strength could make the pair break below this and head towards parity.
EURUSD Daily Chart
With Equities and indices we have continued pain. Some of the European Indices have banned short selling. However the DAX is still not one of them. Earlier today the index opened with a gap lower just above 8500. As of the time of writing it was trading slightly higher around 8650, not far away from 8695.78 (2016 low). It seems that it has started to form a range between the low of the year 8234.09 and the zone around 9200 where last week's high lies.
DAX 4 hour chart
Are we going to see continued downside for indices and continued dollar strength?
Let us know what are your thoughts.