Charts of the Week: False breakout in the GER30; USOIL resumes downtrend

AxiTrader

Prominent CFD and FX brokerage AxiTrader looks at insights from four analytical chart patterns that stood out this week

In this Guest Editorial, the management team at AxiTrader look at technical aspects of importance in retail trading, focusing on charting and analytic patterns during the course of this week.

GER30 had a false breakout this morning, with the index briefly trading above 13,300 points. With the earnings season almost over, and no major progress in the trade talks between the USA and China, there is a lack of momentum. The quick reversal at the US open suggests that the DAX bulls are slowly losing the control. In the near-term a consolidation between 13.130 and 13.310 points seems likely.

GBPUSD is trading within a descending channel, and is struggling to break above the psychological resistance level at 1.30. Price action has been relatively calm in the past few days, but volatility is likely to increase sharply ahead of the December UK General Election. To the topside, traders will be keeping a close eye on the 1.30 level, while support is noted at 1.2880 and 1.2750.

XAUUSD has recovered slightly amid renewed Dollar weakness, but demand remains rather weak as the mood in global markets is still positive. Key resistance is noted between $1475 and $1480, and a clear break above that area would help Gold bulls to regain the upper hand and pave the way for another rally towards $1500.

USOIL recently broke below the rising trendline from the November low, suggesting we could potentially see a test of $54.90-$55.00 support in the near-term. The commodity is still struggling to find a direction, but the overall downtrend remains intact.

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