EURUSD grinds major support
The US dollar surged as Credit Suisse’s difficulties spurred safe-haven buying. A bearish RSI divergence was a warning sign of a deceleration in the latest rally. The confirmation came in in the shape of an abrupt halt at the mid-February spike of 1.0760 and a clean cut through previous higher lows of 1.0680 and 1.0650. The liquidation of leveraged long positions exacerbated the volatility. The daily support at 1.0530 may trigger some profit-taking as the RSI sank into the oversold area. 1.0670 is the first hurdle in case of a bounce.
AUDUSD breaks support
The Australian dollar slips as market sentiment grows cautious across risk asset classes. The bulls’ second attempt at the demand-turned-supply zone around 0.6710 has failed to impress. A drop below 0.6660 has turned it into resistance, prompting intraday buyers to close their bets and compounding the pressure. This suggests that the bias would remain bearish after the previous break below the yearly low of 0.6700. The latest rally would turn out to be a dead cat bounce if losses extend beyond the swing low of 0.6570.
USOIL resumes downtrend
WTI crude plunges over mounting recession worries as the bank drama unfolds. A previous break below the daily low of 73.80 has put the commodity under pressure. Then a decisive close below December’s low and the psychological level of 70.00 has labelled the three-month long consolidation as a bull trap. As the price reaches a 15-month low at 66.00, the RSI’s repeated dip into the oversold zone may temporarily drive the price up. 70.00 is the first resistance and more selling could be expected around 72.50 from trend followers.
