Home / Blog / Market Analysis / Charts of the Week: Massive drop in Oil prices + GER30 falls below another significant support level

Charts of the Week: Massive drop in Oil prices + GER30 falls below another significant support level

Market Analysis / 1 Min Read
Milan Cutkovic / 09 Mar 2020

USOIL had a massive gap lower at today´s market open following Saudi-Arabia´s decision to increase output despite reduced demand and therefore triggering a price war. Usually, such weekend gaps are eventually filled, but in current market conditions it might take much longer for such a bounce to occur. Looking at the monthly chart, next major support can be expected around $27.30, while to the topside, resistance is seen between $39.50 and $40.

USOIL Monthly, Source: AxiTrader
USOIL Monthly, Source: AxiTrader

Meanwhile, USD/JPY has found itself under strong pressure as investors remain highly risk averse and are fleeing into safe havens. Lower rate expectations in the US are weighing on the Greenback as well. Looking at the Monthly chart, traders can expect strong support at the 50 % Fibo of the 2011-2015 rally, which lies around $100.78, followed by the psychological support level of $100. To the topside, immediate resistance is seen at $104.60, followed by $105.

USDJPY Monthly, Source: AxiTrader
USDJPY Monthly, Source: AxiTrader

GER30 has breached another major support level overnight at 11,000 points, paving the way for further losses. A test of 10,850 support looks increasing likely in the near-term, and DAX bears see the 2018 low at 10,266 points as next significant target. To the topside, traders will be keeping an eye on the 11,255 resistance level, followed by 11,413 points.

GER30 Weekly, Source: AxiTrader
GER30 Weekly, 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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