FTSE index(UK 100) grinding higher
The FTSE index continued its comeback as progressive bullish waves moved towards 8400. A close above 8000 is another milestone in the two-week-long rebound, signalling an intense lingering bullish pressure despite a correction last month. 8320 is the next hurdle. However, a potential bearish RSI divergence could indicate a slowdown in the upward momentum, and bulls could use some breathing room to consolidate their gains. 8160 is the closest support in case of a pullback.
AUDUSD struggles to bounce
The Australian dollar experienced a downward spike after the latest CPI reading came out of America. After the spike hit 0.6550, the pair has sought to secure a foothold. While some profit-taking has tempered the short-term impetus, the medium-term outlook is still looking to the upside. 0.6400 at the base of a previous breakout is a critical floor should price action start to slide. The brief swing high of 0.6640 is a crucial resistance, and its breach could open the door to a broader extension.
USDCHF probes resistance
The US dollar consolidates as traders gear up for a soft landing. An overbought RSI has helped the price stabilise by prompting buyers to take some chips off the table. The pair has built a base over 0.8600 to sustain the current bounce. As overall sentiment remains downbeat, bears could look to sell into strength, starting with 0.8700 as a fresh resistance. On the downside, a bearish breakout would further extend losses towards the previous swing low at 0.8440.
