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

AxiTrader

GBPUSD is trending lower ahead of the official Brexit day – which is Friday, January 31st, say senior analysts at AxiTrader

markets

The management team at AxiTrader takes a close look at the chart patterns that have defined this week’s trading.

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.

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.

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.

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.

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.

Find out more about AxiTrader here.

The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

Read this next

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.

Digital Assets

WunderTrading brings automated crypto trading to United States

“Among developed countries, Americans are the heaviest users of cryptocurrencies, with 13% having invested in cryptocurrencies over the past year.”

Retail FX

ACY Securities sponsors child safety and family welfare charity Barnardos Australia

Sponsoring Barnardos will give ACY Securities and its employees an opportunity to do volunteer work through different outreach programs.

Digital Assets, Institutional FX

StoneX executes cash-settled BTC/USD swap for DriveWealth’s UK subsidiary

“Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.”

Opinion

Driving competitive advantage from FX TCA to LPA – what’s it all about? 

Benjamin Disraeli once said, “as a general rule, the most successful man in life is the man who has the best information.” This line has never been more significant than in today’s data-fuelled financial markets, where detailed analysis of information can provide that all-important competitive edge – not just for now, but in the future.

<