Oil and DAX set to resume downtrend + how sustainable is the Gold rally?

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With the number of Coronavirus cases and deaths and still increasing rapidly and an end of the economic standstill not in sight, it is difficult to see the recent stock market rally as sustainable.

The GER30 (DAX) is still in a strong downtrend, and the charts suggest as well that there could be more pain ahead before it gets better. Traders will be closely watching the important area of support between 9035 and 9170 points – with the former one being the 50 % Fibo of the recent rally. To the topside, the psychological resistance level at 10,000 points has capped the topside so far.

dax h1 29032020

USOIL could also resume its downtrend sooner rather than later. The focus currently lies on the major psychological level at $20. A clear break below that level could trigger further momentum selling, pushing USOIL to levels not seen since 1998. Resistance is seen at $24.85, followed by $27.30 and $28.

us oil h4 29032020

GOLD had an impressive rally last week, although the current liquidity issues in the Gold market have caused some concern. The charts suggest that the uptrend remains intact, but the negative RSI divergence on the H4 chart may signal that Gold could give back some of its recent gains before the metal has another run towards the $1700 resistance level. Traders will be closely watching the important area of support between $1590 and $1600.

gold 29032020

Finally, USD/JPY is testing the 21 DMA after Friday´s close below the 200 DMA, and break below could pave the way for a test of 106.75 support.

usdjpy 29032020

by Milan Cutkovic, Market Analyst at 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.
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