Charts of the Week: GER30 reversal; Aussie Dollar under increased pressure

Market Analysis /
Milan Cutkovic / 28 Jan 2020

GER30 recently reached a new record high, but failed to sustain momentum as sentiment turned sour. Traders will be keeping a close eye on the rising trendline support from the mid-October low, followed by the psychological support level at 13,000 points. To the topside, bulls would need a clear break back above 13,350 points to regain the upper hand.

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

 

UK100 broke beneath a major support level at 7465 points, and is currently approaching the 200 DMA around 7360 points. A clear break below that line could signal a continuation of the reversal towards 7127 support.

UK100 Daily, Source: AxiTrader
UK100 Daily, Source: AxiTrader

 

GBPUSD is trending lower ahead of the official Brexit day - which is Friday, January 31st. While the UK is certain to exit the EU on that day, plenty of uncertainties remain around the trade deal between the country and the Union, and this should keep volatility at elevated levels. Support is seen at the rising trendline from the November low, followed by the 200 DMA around 1.27.

GBPUSD.pro Daily, Source: AxiTrader
GBPUSD.pro Daily, Source: AxiTrader

 

AUDUSD is suffering from the risk-off sentiment in global markets. The currency pair is currently testing the 76.8 % Fibo of the Oct-Dec 19 rally, and a clear break below could hint at a continuation of the downtrend, with 0.6680 the next significant support level.

AUDUSD.pro Daily, Source: AxiTrader
AUDUSD.pro Daily, Source: AxiTrader

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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