GER30 lost some of its momentum following a series of disappointing economic data out of the Euro Zone. Hopes about further monetary policy easing from the ECB is keeping the index bid, but the pressure is growing. There is negative RSI divergence on the Daily chart, and the index may test the 21 DMA around 12,200 points soon. A break below may trigger further momentum selling and pave the way for a test of the major psychological support level at 12,000 points.
XAUUSD found strong support at $1482 and the recent break above the $1520 level is giving Gold bulls hope that the uptrend could resume soon. Market sentiment remains mixed, which goes into Gold´s favor. Geopolitical tensions and concerns about the trade war may keep the precious metal bid. To the topside, traders will be keeping a close eye on $1556 resistance, while support can be expected at $1500.
GBPUSD is consolidating within a 1.24-1.25 range. Uncertainty around the Brexit outcome remains high, and traders should expect that volatility could increase further in the short-term. From a technical perspective, the long-term downtrend is still intact, but with positioning heavily skewed to the short side, there is the risk of a short squeeze. The key levels to watch on the topside are at the recent high at 1.2580, followed by 1.2670 (50 % Fibo of the April-August decline).
EURCHF is resuming its downtrend after the SNB refrained from further rate cuts, while the ECB is resuming its monetary policy easing. The short-term outlook is negative, and a clear break below 1.0810 support may pave the way for an extension towards 1.0616. The Daily RSI signals that the currency pair is not yet oversold.
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.
Ongoing rate curve repricing and risk asset reaction perfectly illustrate how worryingly reliant investors have become on easy money policies