GER40 (DAX) seeks support
The GER40 (DAX) is the gift that keeps on giving after another rally. An initial retreat below 21000 has prompted some leveraged buyers to take profit, driving the index off its new all-time high above 21100. As the mood is still overwhelmingly bullish, trend followers are looking to stake in before another leg up with the said peak of 21100 as a fresh obstacle. 20600 is a key support to maintain the short-term momentum or its breach would signal that more bulls are closing their bets.
GBPUSD tests resistance
The pound edged lower after the dollar attempted to claw back recent losses. The pair has managed to hold onto some recent gains after lifting the daily resistance of 1.2200. A rejection at 1.2350 indicates renewed selling interests as sentiment remains generally cautious. On the upside, a break above the said resistance of 1.2350 would attract momentum buyers and raise the bar to the next level of 1.2400. An overbought RSI could cause a temporary retreat for some breathing room.
USDCAD clawing back losses
The Canadian dollar lost steam after a whipsaw in price action saw 200 pips deducted and then added to the pair. As more sellers scramble for the exit, traders would be wary of catching a falling knife, especially as sentiment toward the greenback remains upbeat. 1.4500 is the next level to see whether buyers have committed to the market, or the exchange rate could be heading to the recent bottom of 1.4580. 1.4480 is the immediate resistance in case of a bounce.