SPX500 index hitting resistance
The SPX500 index confirmed its bullish stance after a remarkable comeback from the early August sell-off. The price has turned north after breaking 5500 as price action searches for the previous record high. 5650 is the next hurdle to reach the top and a pivotal level to see if bulls progress as the RSI pushes into overbought territory. Any sign of a slowdown would first see 5550 tested and then 5400 for a complete reversal to take shape.
GBPUSD hits another high
Cable’s bullish run continued as prices touched a multi-year high. The pair has been pushing higher after it broke above the dynamic resistance of 1.3200. From a daily chart perspective, the swing low of 1.3120 is a critical level to keep the uptrend momentum going, as its breach could open the door to a deeper pullback. A continuous overbought RSI suggests a slowdown is imminent, but buying interest could continue. A break above 1.3250 would be a confirmation leading to a test of 1.3320.
USDCHF probes support
The US dollar fell as Jerome Powell indicated that rate cuts are imminent. Another downturn to the recent bottom at 0.8450 suggests the dollar sell-off could continue. The bearish rally is also an opportunity for the greenback to probe for support. 0.8400 is the next level to see if the bears would sell into strength. A turnaround first needs a 0.8570 break and would force early buyers to jump onboard and send the pair to the last swing high towards 0.8700.
