Home / Blog / Market Analysis / Charts of the Week: GER30 Rally Gathers Momentum; GBPUSD Tests Major Trendline Support

Charts of the Week: GER30 Rally Gathers Momentum; GBPUSD Tests Major Trendline Support

Market Analysis /
Milan Cutkovic / 20 Jan 2020

Despite new record highs on Wall Street, GER30 has been struggling to gain momentum. However, this may change soon, as the earnings season kicks off in Germany. Looking at the charts, GER30 bulls remain in control, with the medium-term uptrend intact. The index managed to bounce off the 21 DMA and major support area between 13.360 and 13.380 points, while the Daily RSI has not yet reached overbought conditions, hinting that there might be further room to the topside. 


GBPUSD is currently testing the trend line from the November 2019 low, as well as the psychological support level at 1.30. A clear break below the trend line could trigger more momentum selling and pave the way for a continuation of the correction towards the 200 DMA around 1.2680.

AUDJPY continues to benefit from the positive risk sentiment in global markets, and short-term uptrend remains intact. The currency pair could soon attempt another test of the 76.60 resistance level. Should it clear this obstacle, the rally may extend towards the 78.55 resistance level. The Daily RSI is currently in neutral territory, suggesting traders might not have to worry about AUDJPY being overbought yet.

 


Following a period of increased volatility and a sharp sell-off, USOIL has been consolidating in the last few trading days. Nevertheless, it has managed to bounce of the 200 DMA, and Oil bulls are already looking at the psychological resistance level of $60 as next target, followed by the 21 DMA around $60.40. To the downside, initial support is expected around $58.30, followed by the recent low at $57.35.

 

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