Charts of the Week: GER30 reversal + US Dollar under renewed pressure

GER30 has come under renewed pressure as fears about an escalation of the trade war are increasing. The breakout below 13,000 points is discouraging for DAX bulls, and traders are now watching at 12,874 and 12,791 points for key support. The near-term outlook remains mixed. While the overall uptrend remains intact, the on-going trade tensions could prevent a continuation of the rally.

GER30 Daily, Source: AxiTrader
GER30 Daily, Source: AxiTrader

USOIL broke below the ascending channel pattern, and a daily close beneath the lower trendline could pave the way for an extension of downtrend towards the $52 support. To the topside, resistance is seen between $57 and $57.50 - where the 21 DMA and 200 DMA lie.

USOIL Daily, Source: AxiTrader
USOIL Daily, Source: AxiTrader

Following a longer period of consolidation, EURUSD might see increased volatility in the near-term. The Dollar weakness is pushing the currency pair higher, and a break above 1.11 could lead to further momentum buying and push it towards the 200 DMA around 1.1160.

EURUSD Daily, Source: AxiTrader
EURUSD Daily, Source: AxiTrader

Meanwhile, USDJPY failed to reach the 110 resistance level and selling has intensified since the start of the new trading week. Risk-off sentiment could keep the Japanese Yen supported in the near-term, and push USDJPY towards 107.85 support. Traders will also keep an eye on the rising trendline form the November low.

USDJPY Daily, Source: AxiTrader
USDJPY Daily, Source: AxiTrader

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