The FTSE 100 Index (UK 100) bounces back
The FTSE 100 Index eyes another fresh high, which has price action that breaks the previous resistance of 8400. The move has attracted further buying interest from the start of the breakout rally at the beginning of August. A close above the first resistance of 8280 prompted short-term sellers to trim their exposures, opening the door to the recovery. 8350, right below the recent peak, could be the bears’ last stronghold and a bullish breakout would provide confirmation. As the RSI shows an overbought situation, an 8450 break will be needed to ease any potential sell-off.
AUDUSD pushes higher
The Australian dollar took another step towards December’s high with a move past the 0.6800 level. On the chart, prices are consolidating, indicating that the Aussie could be gearing up for another rally as the RSI dips into neutral territory. 0.6720 is the current support, as the buy side will need to clear 0.6830 to ease any signs of a pullback. Otherwise, the pair could be vulnerable to a move below 0.6680 at the last firm support.
NZDUSD continues the rally
Like its neighbour, the New Zealand dollar also hit a fresh high as prices confirmed a move past 0.6200. A drift above the daily swing high of 0.6270 has put those who were against the summer rally on the defensive. The psychological level of 0.6000 is critical in keeping the Kiwi afloat for the coming days, as its breach could trigger an extended sell-off towards 0.5860. The RSI’s overbought condition has attracted some sales, but 0.6300 is the first hurdle to be lifted before the rally continues.