DAX continues the upswing started on the 6th of December when the price defended the 12900 points support. In the meantime, we broke the mid-term down trendline and created the bullish wedge. The new week starts on the front foot with a nice upswing and the breakout of the 13190 points (grey). The sentiment is positive.
EURCHF finally broke the long-term support created by the combination of the lower line of the wedge and the lower line of the channel up the formation. Currently, we are testing the latest support as a resistance so that is a great occasion for the potential sellers, obviously if we will experience a bounce there.
The volatility of the Oil decreases. The price is inside of the tight range, which can be closed inside of the pennant formation. Some of the traders can see here a head and shoulders pattern so the lower line of the pennant will be at the same time a neckline. For now, with the trading decision, we have to wait for a breakout.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis