GER30 managed to bounce off 13.130 support once again, and DAX bulls remain in control. However, the Daily RSI is suggesting that the index is still in overbought territory, and there might be a correction before the rally extends to the all-time high from 2018. To the downside, traders can expect imminent support in the area between 13.120 and 13.130 points, followed by the major psychological support level at 13.000 points.
USDJPY failed to gain significant momentum, despite the renewed Dollar strength and risk appetite in global markets. The currency pair might come under increased pressure in the short-term, with JPY bulls now eyeing the 108.50 level as next target. A clear break below would pave the way for a decline towards 107.00/20.
EURUSD has been under pressure recently amid declining rate expectations and poor economic data out of the Euro Zone. The currency pair is currently testing the 61.8 % Fibonacci level of the October rally around 1.10, and a break below that level could trigger further momentum selling. EUR bears are looking at the September low at 1.0880 as the next target. To the upside, imminent resistance can be seen at 1.1090, followed by 1.1180.
XAUUSD found some support at the $1450 level, following several days of losses. Investors are optimistic that a trade deal between the USA and China will be signed next month, and the demand for safe havens has declined accordingly. Resistance is noted at the 50 % Fibo level of the summer rally at $1478, followed by $1500. To the downside, Gold bulls will need the $1450 support level to hold, or a decline towards $1400 may follow.
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Ongoing rate curve repricing and risk asset reaction perfectly illustrate how worryingly reliant investors have become on easy money policies