GBPUSD pulls back
The US dollar held its ground after service PMI remained resilient. The pair is striving to hold onto its gains after breaking above August’s high of 1.2300. As more bears cover their positions, they may switch sides and help push towards 1.2600. The RSI’s overbought condition on the hourly chart has temporarily limited the upside and intraday buyers’ profit-taking could offer Sterling some breathing room. 1.2110 over the top of the previous range is the first support and 1.1900 on the 20-day moving average is a critical level.
XAUUSD struggles for support
Gold fell back after strong US economic data boosted the dollar. A tentative close above last summer’s peak of 1803 is a sign of improved sentiment. This has put the bears on the defensive and eased the downward pressure in the medium-term. However, the price needs to consolidate its range after a break above the previous high of 1783. The rally would remain intact as long as bullion stays above the floor at 1750. A bounce would need to lift offers at 1783 then 1810 before the precious metal could regain traction.
GER 40 tests major resistance
Equities hesitate as robust US economic activity fans fears of more rate hikes. The Dax 40 is testing last June’s peak of 14650, a liquidation point from a botched rebound last summer. This is a major ceiling which means that index is at a crossroads between a bullish recovery and a bearish reversal. A breakout could pave the way for a rally towards 15500, reinforcing hopes of a continuation of the uptrend. An overbought RSI on the daily chart shows exhaustion and 14330 on the 20-day moving average is the first support.
