EUR/AUD falls from peak
The Australian dollar surged as business confidence was boosted in the country. The chart shows that the bias favours the Aussie after it broke below 1.6600. A drop below 1.6550 has forced leveraged buyers to bail out, and the current consolidation would be valid if it stayed above 1.6430. The RSI’s oversold condition could attract some bargain hunters as the price tests this demand zone. The first hurdle at 1.6590 and then the peak at 1.6700 are the levels to lift before the pair recovers.
USDJPY attempts to rebound
The Yen continues to bounce away from January’s low as prices push towards 148.00. Sentiment has turned cautious after the greenback bounced off the daily support 142.50. A bullish RSI divergence showed a slowdown in the sell-off momentum, but most buyers need more assurance regarding the sustainability of the current bounce. Short covering mostly likely lifted the pair to the psychological level of 146.00. 145.30 is fresh support, and 147.70 is key resistance that needs to clear before the rebound gains traction.
UK 100 breaks daily resistance
The FTSE rallies after the recent sell-off as price action pushes through the 8000 barrier. After flirting with the April lows of 7920, a jump above the daily resistance of 8200 confirms that bulls have returned. The latest volatility combines short-covering and momentum buying and could open the door to a sustained push to the upside. This month’s high of 8400 is the next level to see if the bullish impetus is intact and a break would trigger a broader move. 8102 is the closest support if the rally needs some breathing room.