EURUSD hits 5-week high
The ongoing negativity with the greenback has seen price action jump towards the 1.09 area. The fallout from last week’s CPI data continued as the Fed now looks more likely to begin cutting rates soon. A break above 1.0800 has prompted more sellers to bail out, turning this level into fresh support. The RSI’s overbought situation has attracted some sellers after the pair dropped 30 pips. 1.0890 is the next target before 1.10 can be tested.
USOIL finds double bottom
WTI bounced after finding firm support at a recent double bottom. After weeks of uncertainty over the path of the black gold, bulls have finally got a reprieve. Traders are still trying to keep the latest bounce off 76.80 valid, and the sideways action is a sign of hesitation as both sides look to regain control. 79.80 on the 20-day SMA is the first resistance; a bullish breakout would lead to a test of 81.00. On the downside, a slip below 77.00 would flush out buyers and expose another downturn.
US 30 heading for another record
The Dow Jones pushed for another fresh high as the rumour mill continues over the Fed’s next signal. The index reached the psychological level of 40000 before a slight pullback saw some sideways hesitation. With the RSI in significant overbought territory, a correction could lower the index in the near term. A tentative break below 39600 would cause a retest of 39000, potentially triggering a deeper correction.
