USDCHF drops 100 pips
The US dollar saw a sharp reversal against the franc as prices recovered to the downside, prompting renewed interest in dollar analysis. After pulling back after hitting a double top at 0.8880, the greenback looks for support towards 0.8775, which coincides with the base of a previous bullish breakout. A bullish RSI divergence in this demand zone could revive the pair. A break above 0.8800 could begin the reversal, as the daily chart shows the pair remains bullish. Any hopes of a triple top then require a 0.8860 break.
AUDUSD breaks critical resistance
The Australian dollar jumped higher after the progressive balance of trade data. The pair broke February’s high around 0.6583 and opened the door for a move above 0.6600. With the RSI dipping into overbought territory in the near term, prices are expected to slow down. 0.6620 has become resistance, and a drop below the 0.6560 area could see more bears selling into strength.
UK 100 continues downtrend
The FTSE 100 has remained upbeat while grinding along the 20-day SMA, indicating that bulls are still eager to keep the ride going. Despite prices being on a downtrend, a break above 7700 could signify another rally, akin to the one witnessed in the second half of February. Moreover, 7640 is crucial in maintaining the week-long bounce intact, as its breach could trigger a broader sell-off towards 7580.
