DAX 40, AUD/USD and copper price under pressure
Technical analysis of the DAX 40, AUD/USD and copper price as they slide amid risk-off sentiment following US President Trump’s comments.
Macro update
Asian shares slide: Asian equities fell sharply as oil prices climbed after comments from US President Trump suggested there was no urgency to reopen the Strait of Hormuz.
Treasury yields jump: US yields rose to multi-month highs as higher oil prices reignited inflation concerns and increased expectations of a Fed rate hike this year, with the 30-year yield moving above 5% and the two-year yield reaching its highest level since 2025.
Oil rally continues: Brent climbed above $107 a barrel and was up nearly 6% for the week, supported by ongoing disruption around the Strait of Hormuz, fresh shipping incidents and the absence of US-Iran talks.
Japan hit by inflation and tech weakness: The Nikkei fell as much as 1.8% after wholesale inflation accelerated to 4.9% in April, while profit-taking in technology shares weighed on Advantest, Tokyo Electron and Fujikura.
South Korea tumbles after record high: The KOSPI briefly rose above 8,000 for the first time before plunging more than 5%, highlighting the fragility of risk appetite despite recent strength in global technology stocks.
Dollar strengthens as politics weighs on sterling: The dollar headed for its strongest week in two months as safe-haven demand and higher yields supported the currency, while sterling fell to a one-month low after Wes Streeting’s resignation intensified the UK political crisis.
DAX 40 under pressure
The DAX 40 is seen coming off its 14 May high at 24,493 and may revisit its 200-day simple moving average (SMA) and March-to-May uptrend line at 24,118-to-24,047 which could act as support. If not, the 12 May low at 23,921 may also be reached.
Resistance sits between Friday's intraday high at 24,298 and the 14 May 24,330 low.
Short-term outlook: bearish while trading below the 14 May 24,493 high
Medium-term outlook: bullish while above the 30 April low at 23,716
Dax 40 daily candlestick chart
AUD/USD comes off multi-year highs
AUD/USD is seen coming off its $0.7277 four year high and looks to be slipping through its March-to-May support line at $0.7180 towards its $0.7150 support zone. This may hold in the short-term. If not, the late February high at $0.7136 may be reached as well.
The $0.7186-to-$0.7187 resistance area is expected to act as immediate resistance ahead of the late April high at $0.7200.
Short-term outlook: bearish while below its $0.7223 15 May high
Medium-term outlook: bullish while above the 29 April low at $0.71002
AUD/USD daily candlestick chart
Copper price retreats from record high
The price of copper is seen swiftly coming off its 13 May $6.6328 record high with the mid-January-to-mid-May highs at $6.1623-to-$6.1543 representing a possible downside target zone.
Minor resistance may now be found in the $6.5000 region.
Short-term outlook: bearish while remaining below the $6.5000 mark
Medium-term outlook: bullish while trading above the 4 May $5.7732 low
Copper daily candlestick chart
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