Kiwi New Zealand (NZDUSD) attempts to lift
The Kiwi New Zealand attempted to stop the freefall after dropping over 100-pips since the beginning of the month. The pair is trying to stabilise above 0.6100 and a bullish RSI divergence indicates a slowdown in the sell-off momentum, opening the door to a potential bounce. The first zone between 0.6140 and the psychological level of 0.6200 is the first obstacle to clear to ease the selling pressure. On the downside, 0.6130 is a fresh support in case of a prolonged consolidation.
USDCHF grinds support
The US dollar consolidates as traders await the upcoming CPI data. In the wake of August’s sell-off, profit-taking has been driving the pair higher. The upward grind came to a halt at the support-turned-resistance of 0.8510 where bears could be looking to double down. 0.8400 is the closest support to keep the upward slope intact and its breach would confirm that sellers are here to stay. The bulls will need to lift offers around 0.8850 to extend the recovery above 0.8600.
UK 100 tests critical floor
The FTSE looks to rebound as the ECB signalled another rate cut, something that the Bank of England is looking to do. The index’s close below 8200 has invalidated the recent spike, putting the bulls under pressure. As the index steadies around 8250, 8400 on the hourly chart is the first resistance to clear to give the buy side a fighting chance but the index could turn lower if 8100 is broken.
