GER30 cleared a major resistance level at 13,000 points and DAX bulls are already eyeing the all-time record at 13,598 points as next target. Imminent resistance is noted at 13,208 points, although that this should not be a major hurdle for the index. A strong earnings season and promising trade talks between the USA and China are keeping positive sentiment intact.
Another currency pair that has been benefiting from the improvement in risk appetite is AUD/JPY. It is currently testing a major resistance level at the 50 % Fibo of the May - August 2019 decline, and a break above could pave the way for an extension of the rally towards $77. Imminent resistance is seen at $75.80, while support is noted at the 21 DMA around $74.00.
USOIL is gaining some momentum following a longer period of consolidation. The commodity is currently trading within an ascending channel pattern, and is testing the 200 DMA. A clear break above the $57 resistance level could give USOIL another boost, and fresh momentum could see it testing $59 resistance soon.
Rising Oil prices could support the Canadian Dollar in the short-term. USD/CAD has been under pressure primarily due to a broad decline of the Dollar, but should the Oil rally continue, the currency pair might see increased downside pressure. Key support is noted at $1.3020, and a break beneath it could pave the way towards $1.2780.
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Sometimes you have to throw conventional wisdom out the door and just let the good times roll