EURJPY hits another high
The euro steadies as the ECB decides if now is the time to act on the rate cut rumours. A brief dip below 170.00 has shaken out some undecided traders, but sentiment remains relatively solid. Price action on the chart indicates a lingering bullish pressure as it bounces off the 20-day SMA at 169.70. 171.10 is the closest resistance, and a breakout would lift bids to April’s high of 171.50, potentially resuming the uptrend. On the downside, 169.20 is significant support if the single currency struggles to bounce.
GBPUSD finding its feet
The US dollar remained choppy as PCE data came in short of expectations. The pair came under pressure at a 3-month high above 1.2800, which saw over 100 pips wiped off the value, leaving a dent in the upward bias. The latest move saw stiff selling pressure at 1.2740 and a drift below 1.2700, suggesting weak follow-through interest. 1.2654 is a crucial zone to keep the price afloat as its breach would trigger a new round of sell-off below 1.2500.
GER 40 breaking the bear trend
The Dax remains bearish after falling away from fresh highs in the last few sessions. However, a swift rebound from the recent low at 18370 has put the index back on track. A break above the swing high 18800 would flush out the short interests and prompt sellers to cover their positions. Bulls could expect this rally to continue with the latest bounce on the RSI. 18200 is the first support as the RSI returns to the neutral area, with 18000 a primary psychological floor.
