Charts of the Week: GER30 loses momentum; USDJPY breakout imminent?

GER30 almost reached the psychologically important resistance level of 13.000 points earlier this week, but lost some of its momentum recently. The RSI on the Hourly charts is showing a negative divergence, suggesting that there is potential for a pullback before the rally resumes. DAX bulls will keep a close eye on the support area between 12.800 and 12.820 points. The short-term uptrend remains intact as long as the index can hold itself above the 12.500 support level.

USDJPY is consolidating around the 200 DMA, as traders are waiting for the outcome of the Federal Reserve rate decision. The risk-on sentiment in global equity markets is keeping the currency pair supported, and should the US central bank signal that it might refrain from further rate cuts in the near-term, a breakout above that significant line of resistance appears more likely. The next major resistance levels would then be seen at 110.00 and 110.60/65, while to the downside, support is seen at 108.20/25.

USOIL continues its mild uptrend, with an ascending channel pattern noted on the hourlies. Resistance is noted at $56, followed by $56.80. To the downside, Oil traders will keep an eye on $54.50 and the lower trendline for key support.

XAUUSD is trading within a triangle pattern and volatility has been rather low in recent weeks. An increase in risk appetite has reduced the demand for the precious metal, while a declining US Dollar prevented a larger decline. XAUUSD might continue its consolidation for a while, unless political risks return - which is not unlikely.

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