Charts of the Week: GER30 rally gains momentum, while GBP volatility jumps

Market Analysis /
23 Oct 2019

GER30 cleared another obstacle by breaking above the 12.660 resistance level, and a test of psychologically important 13.000 level may follow soon. Momentum remains strong, and the RSI suggests that the index is not yet in overbought territory. European stock indices are starting to catch up with the US ones, although the Brexit drama and weak economic data out of the Euro Zone are weighing a bit on sentiment.

GER30
GER30

GBPUSD has seen a significant increase in volatility recently, and given that the uncertainty around Brexit remains high, this is likely to persist in the near-term. Key support is seen at the 61.8 % Fibo of the 2019 decline around 1.2825. A break below could trigger further position covering from GBP bulls, and push Cable towards the 200 DMA around 1.2710.

GBPUSD
GBPUSD

XAUUSD bounced off $1458 support, but the recovery rally has been weakening recently as the risk-on environment reduced demand for the precious metal. Resistance is seen at the falling trendline from the August high, followed by $1520. To the downside, traders will look at $1475 and $1458 support. As long as Gold can keep itself above the support area between $1450 and $1460, the uptrend remains intact.

XAUUSD
XAUUSD

AUDUSD recovered in the past two weeks, as the Aussie Dollar caught a bid amid an improvement in risk appetite. However, it has lost some of its momentum recently and failed once again at the major resistance area between 0.6880 and 0.69. Traders looking to trade the range are keeping a close eye on support at 0.6820. A break below could pave the way for another correction towards the lower end of the range between 0.6670 and 0.6690.

AUDUSD
AUDUSD

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