Intraday Market Analysis – EUR gains traction
EURUSD finds support
The dollar struggles over downbeat PMI in both manufacturing and services. The euro came under pressure at the support-turned-resistance of 1.0450 from last summer. The pair has been consolidating its gains after ten days of straight ascent earlier this month. A slide below 1.0280 has shaken out some buyers but the price bounced off 1.0220. A close back above the said resistance could resume the rally towards 1.0600. 1.0340 is the immediate support in case of a fallback as the RSI ventures again into the overbought area.
USOIL fails to bounce back
WTI crude tumbles as a buildup in gasoline inventories fueled fears of weakening demand. A close below September’s low of 76.50 would confirm that the bears are still in charge, invalidating the rebound over the past three months. A brief bounce above the psychological level of 80.00 has prompted intraday sellers to cover. However, the commodity is not out of the woods yet. 82.00 is the closest resistance and the buy side will need to clear 85.00 before they could hope for a recovery. Otherwise, 72.00 would be the next stop.
UK 100 tests major resistance
The FTSE 100 finds support from solid performance by commodity stocks. The index is testing September’s high and the psychological level of 7500. This means that it is now at a crossroads between a bullish reversal or a bearish continuation for the weeks to come. A bullish close could pave the way for a rally above this year’s high of 7670. The RSI’s overbought condition may cause a pullback with 7390 as a fresh support. 7290 along the 20-day moving average would be another level to assess the bulls’ commitment.