AUDUSD grinds higher
The US dollar tumbled after Fed Governor Christopher Waller raised the possibility of rate cuts. The price continues on its way up after lifting offers around the psychological level of 0.6600. 0.6740 at the start of a sell-off in early August is a major resistance where a combination of profit-taking and fresh selling could drive the quote lower, giving the rally some breathing room in the process. A bullish breakout would extend the Aussie’s recovery to 0.6900. On the downside, 0.6600 has turned into an immediate support.
USOIL builds base
WTI crude bounced in the hope of more supply cuts by OPEC+. 72.20 near the origin of the July rally seems to be a solid support in the absence of lower lows. The confluence of the recent swing high and the 20-day SMA at 78.60 so far has capped the commodity’s rebound. As the price action stabilises, base-building above 72.20 is a prerequisite before the bulls could push back in a meaningful manner with a break above 78.60 forcing the bears to cover. Otherwise, the yearly lows around 66.00 might be exposed.
UK 100 seeks support
The FTSE 100 stalls as BoE official Jonathan Haskel shrugs off speculations about rate cuts. The index hit resistance in the former demand zone 7500-7530 and profit-taking by intraday buyers has weakened the momentum. The previous swing low of 7400 is the closest support to expect follow-through buying but failing that, 7320 near the recent bottom would be the bulls’ second line of defence to keep the rebound bias intact. On the upside, a bullish breakout would bring the index back to the daily resistance of 7680.
