S&P index (US 500) probes support
The S&P index slid further as investors awaited further confirmation of a move from the Fed. While a close above 5500 supports the bullish trajectory, the latest horizontal grind signifies exhaustion. A retracement started when short-term buyers took profit. As the RSI dips into the oversold zone, the fallback could be seen as an opportunity as sellers step in. 5300 over the 20-day SMA is the first level to expect follow-up bids, and 5000 is necessary support.
NZDUSD slides lower
The Kiwi took a slight breather after dropping over 300 pips but remains under a strong bearish influence. A rally below the previous swing high of 0.6080 has prompted buyers to trim their exposure. After a brief consolidation, 0.5950 is the key obstacle to lift before the pair could break free of its corrective path, potentially opening the door to 0.6030. Instead, stiff selling has pushed the pair below 0.5880, putting a dent in any upside momentum. 0.5800 is critical support, and price action could swing around with a bullish divergence emerging on the RSI.
EURGBP hits critical floor
The Euro rallied as the pair tested a critical double bottom, which led to a bullish drive above 0.8400. The bullish pattern continued after a break above 0.8440 forced sellers to bail out. A revisit of July’s high of 0.8500 shows a lack of commitment from bears to step in to bring prices lower. While some bargain hunting triggered a bounce after the RSI hit the overbought area, the bulls must clear 0.8450 before regaining control. Otherwise, a bearish reversal would extend losses below 0.8400.
