UK 100 index probes resistance
The UK 100 index (FTSE 100) recoups some losses, and the index so far has found support at 8240 as price action creates a bullish channel, offering buyers some relief. Still, they are not out of the woods yet, as the latest bounce could be due to short-term sellers’ profit-taking with the support of a bit of bargain hunting. 8300 would be their first real test, and a bullish breakout could extend gains to 8360. However, a fall below 8180 could cause a reversal to 8000.
USDCAD tests major resistance
The US dollar remains firm as traders expect resilient data later this week. On the chart, the price tests the 1.3600 area, a major ceiling that has capped the greenback’s advance so far. Its breach would signal that the bulls are back in the game, with the recent peak of 1.3740 as a potential target later. As the RSI shows a pullback, this is a test of the bulls’ resolve with 1.3550 as the first support and 1.3500 as a second layer.
AUDUSD continues the rally
The Australian dollar clawed back more losses after the early September sell-off threatened to drive prices lower. The pair is looking to move back to 0.6800 with a preliminary bounce above 0.6720, pushing a few short interests out of the way. The former false spike at 0.6760 is a significant resistance to lift to instil confidence and open the door to a broader rebound. On the flip side, a slip below 0.6680 would trigger a new round of sell-off towards 0.6620.
