AUDUSD struggles to bounce
The Australian dollar faltered after Q2’s CPI fell short of expectations. After hitting resistance and forming a double top at 0.6900, the pair has sought to secure a foothold. While some profit-taking has tempered the short-term impetus, the medium-term outlook is still skewed to the upside. 0.6720 at the base of a previous breakout rally coincides with the 20-day SMA and might see buying interests again. The brief swing high of 0.6840 is a key resistance and its breach could open the door to a broader extension.
USDCHF probes resistance
The US dollar consolidates as traders await the Fed’s final call for monetary policy. A deeply oversold RSI has helped the price stabilise by prompting sellers to take some chips off the table. The pair has built a base over 0.8560 in an attempt to sustain the current bounce. As overall sentiment remains downbeat, the bears may look to sell into strength starting with 0.8700 as a fresh resistance. 0.8790 on the 20-day SMA is where more selling pressure could be expected. On the downside, a bearish breakout would further extend losses.
UK 100 grinds higher
The commodity-heavy FTSE inches higher as China pledges to shore up its property market. A close above June’s peak of 7685 is another milestone in the two-week long rebound, signalling a strong lingering bullish pressure despite a correction from last May. 7770 from the start of the late May sell-off is the next hurdle. However, a bearish RSI divergence indicates a deceleration in the upward momentum and the bulls could use some breathing room to consolidate their gains. 7640 is the closest support in case of a pullback.
