Top three charts of the week: DE30, OIL WTI, USDCAD

Coronavirus panic still remains the main topic on the financial markets. Equities, FX pairs and commodities remain volatile offering plenty opportunities. Let's take a look at the current technical situation on DAX , WTI and USDCAD. 

DE30

Let’s start today's analysis with DAX (DE30), the German index that experienced an enormous sell-off last month. Buyers were trying to recover at the end of March but kept failing at the 10,000 pts handle. It is worth noting that in spite of recent bounce higher the main trend remains downward. The nearest resistance to watch is the aforementioned 10,000 pts handle. Apart from that, as long as the price sits below 10,350 pts, the ongoing upward move should not be considered anything more than a correction. In case gloomy moods prevail, the index may pull back towards recent low at 8,000 pts. Traders should keep in mind that the coronavirus pandemic is still far from being over and equities are prone to downside risks.

DE30 MN interval. Source: xStation5

OIL WTI

Oil experienced the biggest crash in nearly 30 years. While the biggest drop came in the second week of March, the downward move is still being continued. Looking technically at W1 interval, one can see that buyers were trying to halt declines at the $27 handle but this support was finally broken. Closing of the weekly candlestick above the aforementioned $27 handle could be considered a bullish signal and could herald an upward move.. In such a scenario, the upward correction could extend towards the resistance at the $44 handle. This level is marked with previous price reactions and the upper limit of Overbalance structure. Nevertheless the mid-term trend remains downward and as long as the price sits below $27, further declines are the base case scenario. Key support to watch can be found at $13, where the 127.2% Fibonacci retracement is located.

OIL WTI W1 interval. Source: xStation5

USDCAD

Last but not least, let’s take a look at the technical situation on USDCAD chart. Looking at the monthly time frame, one can see that the pair has been trading in a strong upward move since the beginning of 2020. The pair soared more than 1600 pips in less than 3 months. Sellers managed to halt upward move at 1.4650 - high from 2016. Nevertheless after a sharp correction, the pair found support at the lower limit of Overbalance structure and bounced higher. Thus the 1.40 handle could be considered  a key support and as long as the price sits above it, continuation of the upward move is possible. However breaking below may lead to a bigger correction with 1.3650, high from late-2018, being a target.

USDCAD W1 interval. Source: xStation5