USDCHF extends the descending channel
The US dollar hit another low point as prices crashed through the 0.8900 level. The bull’s attempt at a rebound came to a halt at 0.8940, which is a support-turned-resistance after a mid-month sell-off. A failure to break higher indicates sellers have moved in to extend the recent bearish channel. A further breakout would force bulls to bail out and trigger a new round of selling towards 0.8820, potentially causing a bearish continuation.
EURGBP tests support
The pound was boosted by a decent inflation data reading, which could lead the BoE to think about its future rate cuts. The latest spike prompted buyers to cover and eased the pressure. But a long bearish candle toward the previous bottom at 0.8380 shows rejection. A pullback is needed to stop the rot and enhance the bullish momentum at 0.8410, which could validate the rebound and cause an extension to 0.8470. 0.8300 is the support as the RSI moves to the oversold area.
US 30(Dow 30) jumps 700 points
The Dow 30 jumps as the likelihood that the Fed will begin cutting rates moves towards 100%. The index is still striving after lifting the critical resistance of 40500. A fall below 40000 will put the short-term bulls on the defensive, leading to more profit-taking as they step to the side. 41500 over the 20-day SMA is the next level to see whether buyers will continue pushing on the daily chart.
