Charts of the Week: GER30 bulls hopeful as index bounces off 200 DMA; USOIL struggling to recover

GER30 had a strong bounce off the 200 DMA and is now approaching key resistance at 12,000 points. A clear break above that level could potentially pave the way for a recovery towards 12,320 points - the next major bull target. However, sentiment in the stock market remains fragile as fears of a trade war continue to weigh on prices. Solid resistance is also seen at the 21 DMA, which lies just above the 12k level.

GER30
GER30

The pressure on USOIL has eased somewhat, and the daily RSI is showing slightly oversold conditions. However, there are no signs of a recovery yet, and WTI would likely have to clear the hurdle at $56.70 to gain stronger momentum - which is still roughly $3 away from the current price. Given the current market sentiment and uncertainty around OPEC´s course of action, Oil traders remain cautious.

USOIL
USOIL

The Canadian Dollar is holding surprisingly well, despite the decline in Oil prices. USD/CAD failed to rally as rate expectations in the US have been declining recently. Nevertheless, weak Oil prices and a still relatively strong US economy should support the currency pair in the near-term. Key support is seen at the rising trendline from the mid-March low, followed by the 200 DMA around 1.3250.

USDCAD
USDCAD

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