GER 40 grinds demand area
The Ger 40 (Dax) struggles as the sell-off from last week rumbles on. The index is still trying to hold onto 19000, as a drop below this critical chart level could shift sentiment to the pessimistic side and trigger a deeper correction to 18700. A former brief support at 19100 is the first obstacle to clear to ease the downward pressure. Only a rally above the major support-turned-resistance of 19450 from the daily chart could initiate a meaningful bounce.
USDJPY hits resistance
The US dollar retreated as sentiment shifted after a month-long rally. The Yen has clawed back some of the losses from October’s liquidation, and close to the immediate support of 152.30 suggests that the sell side is still in the game. However, the psychological tag of 150.00 is a significant obstacle to break before bears can advance. On the upside, a break above the recent peak at 153.80 would expose the pair to another rally.
EURGBP UK budget pressures the pound
The pound softened amid fears of a fresh recession as the UK budget decisions still linger in the market. The pair moved almost 100 pips higher before a pullback towards the 0.8350 area. A bullish continuation could force sellers to bail out and trigger a move to the recent spike at 0.8430. On the downside, offers around 0.8320 would be the first support. A close back below the recent low of 0.8300 would resume the slump towards 0.8230.