DAX (GER40) to test all-time high
The DAX (GER40) looks to advance as the appetite for investing in equities continues across the board. The index is shooting for an all-time high above 20500 as the bulls seek to trigger a continuation after the recent sell-off. However, with the RSI bouncing from the overbought area, a pullback might be due to give the potential rally some breathing room. 19750 is fresh support, and the resistance-turned-support and the psychological level of 20000 could see short-term trend followers eager to invest, pushing the index higher.
USDCAD remains bullish
The Canadian dollar remains under pressure from its neighbour as the year comes to an end. The pair continues to search for support after its recent rally, which saw price action pop above the 1.4400 level. On the chart, the base of a previous breakout rally around 1.4300-1.4320 is a significant demand zone to keep the rebound momentum intact. Its breach could trigger a deep correction towards December’s low near 1.4000. The tip of the latest faded bounce at 1.4450 is the first hurdle to clear, and 1.4520 is a key resistance before another rally.
USOIL finding its feet
WTI broke the previous high of 71.00 to gain some traction going into the new year. The recent climb hit some resistance, suggesting that sentiment remains cautious, with sellers looking to double down. 72.50 is a critical level to maintain the latest higher high patterns should the bulls continue to come back. Otherwise, the price could sink below 70.50, invalidating the current recovery.
