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  • Euro seeing a modest bounce from the 1.16 handle, eyes are on the 1.1700 handle, which may well indicate a change in fortunes for the Euro, should the single currency surmount the psychological barrier. Get your $EUR market update from @JMcQueenFX here:https://t.co/xsoCcOeZov https://t.co/gj45VCCBDf
  • Gold Price Forecast: XAU Coil Continues After 1800 Res Rejection https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/10/19/Gold-Price-Forecast-XAU-Coil-Continues-After-1800-Res-Rejection.html $GC_F $Gold https://t.co/D6hRSB5vNx
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.09% 🇦🇺AUD: 0.80% 🇬🇧GBP: 0.51% 🇪🇺EUR: 0.23% 🇨🇦CAD: 0.08% 🇯🇵JPY: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vguzKnWbkt
  • This was not the pair that I expected to make the most of leveraging the Dollar's pullback. $USDCNH puts in a sheering bearish break on the biggest single day drop in 5 months: https://t.co/sKFWOqVhNZ
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.47% Wall Street: 0.34% Germany 30: 0.17% FTSE 100: -0.02% France 40: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SOuNRfF9cI
  • Heads Up:🇺🇸 Fed Daly Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇩🇪 Bundesbank Mauderer Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-19
  • ECB's Lane - Market may not have fully absorbed forward guidance $EUR
  • AUD/USD extends the advance from the start of the month as the Reserve Bank of Australia (RBA) Minutes warn of rising home prices. Get your $AUDUSD market update from @DavidJSong here:https://t.co/FfADz5RGNo https://t.co/PfJAdSL2iO
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 3.69% Gold: 0.66% Oil - US Crude: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Gay35tIWLB
DAX 30, CAC 40 Technical Outlook: Levels & Lines to Watch

DAX 30, CAC 40 Technical Outlook: Levels & Lines to Watch

Paul Robinson, Strategist

DAX 30 / CAC 40 Technical Highlights

  • DAX 30 up against corona-gap, couple different scenarios
  • CAC 40 wedging up, may need some more time before move

DAX 30 up against corona-gap, couple different scenarios

The DAX continues to grind its ways sideways and may continue to do-so for a while longer before reaching a resolution. With the way price action is behaving there are a couple of scenarios that could evolve here. Generally speaking there is nothing overtly bearish, but price is having a difficult time rising above the February 24 coronavirus gap.

One scenario that could unfold is the development of a wedge formation between the bottom of the corona-gap and the trend-line from June. Given the lack of trading activity right now a further tightening of the range looks to be the higher probability scenario. Which way it breaks we shall have to wait and see, but it seems likely the gap up to 13579 will get filled at some point.

If, however, and this is only an “if” the DAX rolls over from here, there could be a head-and-shoulder-ish pattern develop with the high in June as the left shoulder, the head in July, and the right shoulder occurring now. For this to be an active scenario a rollover and breaking of the neckline needs to occur. Looks like a lower delta scenario at the moment, but one we can’t rule it out.

DAX Daily Chart (corona-gap breakthrough or topping sequence?)

DAX daily chart

DAX Charts by TradingView

CAC 40 wedging up, may need some more time before move

The CAC has been dead money with it moving sideways in a narrowing range since June. The narrowing price action may continue until a defined wedge forms similarly to the DAX. On the top-side, even if price can rise out of the wedge it has its work cut out for it, with the 200-day and June/August 2019 lows in confluence around 5184. Continued range looks likely for now...

CAC 40 Daily Chart (wedge forming)

CAC 40 daily chart

CAC Chart by TradingView

Want to learn more about trading the DAX? Check out ‘How to Trade the DAX’, and join me weekly for technical updates in the Indices and Commodities webinar.

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---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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