DAX 40, copper price capped by resistance as AUD/USD hits near 2-year high
Technical analysis of the DAX 40, copper price as they are capped by resistance while AUD/USD hits a near 2-year high.
Macro update
Dollar sinks to multi-year lows:
The United States (US) dollar (USD) hovered near three-year lows after a heavy selloff, as President Trump brushed aside concerns over currency weakness, emboldening traders to maintain bearish USD positions.
Gold surges toward $5300:
A softer dollar lifted gold to fresh record highs above $5280 an ounce, with prices pushing toward the $5300 level amid rising demand for non-dollar assets.
FX volatility remains elevated:
The euro briefly broke above $1.2000 for the first time since 2021, Sterling touched its strongest level since 2021, and the Japanese yen strengthened on intervention chatter before the dollar staged a modest rebound.
Confidence in the dollar erodes:
The dollar index slid to a four-year low after falling more than 9% in 2025, weighed down by concerns over US policy unpredictability, Federal Reserve (Fed) independence, and signals that Washington may tolerate a weaker currency.
Central banks in focus:
US Treasury yields were little changed ahead of the Fed decision, where no policy move is expected, while Australian inflation data lifted market pricing for a Reserve Bank of Australia (RBA) rate hike next week to above 70%.
Equities shrug off FX swings:
With the exception of the Dow Jones, US stocks closed at record highs ahead of mega-cap earnings, while Asian markets were mixed, led by a strong rally in Hong Kong equities despite ongoing currency market turbulence.
DAX 40 stuck around 25,000 mark
The DAX 40's keeps trading around the 25,000 region and seems to be struggling to gain upside momentum.
A rise above this week's high at 25,122 is needed for further upside to manifest itself.
While Monday's low at 24,839 underpins, though, upside pressure remains in play.
Short-term outlook:
Bullish while below Monday's 24,839 low.
Medium-term outlook:
Bullish while above the 21 January low at 24,455.
DAX 40 daily candlestick chart
AUD/USD nears 2-year high
AUD/USD's ascent is gaining pace with the psychological $0.7000 region having been reached, an area last traded in February 2023. Next up is the June 2020 peak at $0.7064.
Support may now be found around the September 2024 high at $0.6942.
Short-term outlook:
Bullish while above $0.6660, targeting the $0.6800 region.
Medium-term outlook:
Bullish while above $0.6593, targeting the July 2023 high at $0.6895.
AUD/USD daily candlestick chart
Copper advance capped by resistance
The copper price so far remains below this week's $6.0338 high which needs to be overcome for the January peak at $6.1543 to be back in sight.
Minor support may be spotted around the $5.9235 late December high ahead of Tuesday's $5.8100 low.
Short-term outlook:
Bullish, targeting the $6.5000 region while above $5.8100.
Medium-term outlook:
Bullish; eyes $6.5000 and potentially the $7.0000 region while trading above the 29 December low at $5.5413.
Copper daily candlestick chart
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