EURUSD struggles for support
The US dollar strengthened after Fed officials echoed the need for interest rates to stay high for a while. A break above the previous swing high of 1.0610 has offered buyers some relief by forcing the opposite side to cover some of their bets. The round number of 1.0500 has triggered a ‘buy-the-dip’ behaviour. The top of 1.0640 above 1.0590 is a key hurdle to lift to confirm that the bulls have regained control then 1.0770 could be within reach. On the downside, a fall below 1.0500 would invalidate the short-term rebound impetus.
GBPUSD seeks follow-up support
Cable pulled lower as Britain’s CPI showed a marginal drop in September. The price action is at a crossroads after it bounced off its 7-month low of 1.2050 then met resistance at the daily support-turned-resistance of 1.2330. Renewed buying interests will need to hold their positions above the demand zone 1.2050-1.2120 to sustain the rebound bias. A break above 1.2220 then 1.2330 would elbow the bears out and trigger a recovery to 1.2500. Failing that, a fall below the said zone would cause a deeper correction to 1.1800.
NAS 100 inches lower
The Nasdaq 100 tanks as Treasury yields rise amid US policymakers’ assertive comments. The index is looking for support after the rally stalled at 15320. 14850 at the base of the latest bullish thrust is an important level to expect follow-through buying and a sustained bounce might attract momentum buying and expose the September high of 15550, potentially putting the quote back on track. A drift below the said support, however, would dent the optimism and send the index back to the recent daily low of 14450.
