EURUSD may give up February gains
The greenback’s safe-haven status and the economic recovery are working in tandem to lift the dollar back from the abyss.
Friday’s bearish MA cross after an overbought RSI indication was a warning sign of the over-extension. The reversal was confirmed by the invalidation of a three-week-long trendline.
1.2020 is the intermediate support, but a failure to rally back above 1.2140 would mean that the true support lies near the daily level of 1.1950.
S&P 500 aims for daily support
Fear of reflation has only started what seems to be a necessary correction given stocks’ wild valuation in recent months.
An RSI divergence, coupled with a bearish MA cross, signaled that price action was heading south. The psychological level of 3700 acts as a key daily support as the bearish momentum may accelerate after a brief consolidation.
The area between the moving averages and 3870 would be a supply zone in case of a rebound.
WTI hovers under pre-pandemic resistance
A surprise buildup in US inventories raises oversupply concerns.
An RSI divergence reflected trader caution where the indicator’s failure to follow up with a higher high indicated a loss in the upward momentum, a prelude for a potential reversal.
As the price dips into the oversold territory, 61.00 could see buying interests. Its breach, however, could lead to a sell-off towards 59.50.
On the upside, the price will need to climb back to 63.00 to break the resistance.