Intraday Analysis – S&P Looking for Another Record!

USDCHF finds the bounce

The greenback found its bullish voice after jumping over 100 pips. The rebound came as the pair had been dropping for most of June, a sign of a lingering downbeat mood. Bulls must clear the psychological hurdle of 0.9000 before a recovery can materialise. 0.8900 is fresh support, and its breach would invalidate the rebound and send prices below the recent support at 0.8820, confirming a bearish divergence on the RSI indicator in the process.

EURJPY hits another high

The Euro continues to dominate the Yen after breaking through the recent swing high at 170.70. Bulls have doubled and could continue the uptrend with 171.50 as the next milestone. The RSI’s new top in the overbought zone could lead to a temporary pullback, likely to meet trend followers’ interest. 170.00 is the first support should the bulls start to turn their attention elsewhere, and 168.80 at the base of the current leg of the rally would be a critical level to maintain the momentum.

US 500 grinds resistance

The S&P 500 took a breather as a drop away from the recent top saw some much welcomed consolidation. The index is pulling back from its record high above 5500 and is testing 5440, with the RSI indicator heading back into the neutral area. A bearish breakout would force leveraged long positions to liquidate and cause a correction to 5280, which coincides with the 20-day SMA. The overall sentiment remains upbeat, and the Bulls will be looking to keep track as another rally could head towards 6000.

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