GER40 index not slowing down
The GER40 index (Dax) ticked higher as global market optimism and rising US markets drove gains. After hitting resistance at 19700, the index powered to another 200-point lift to confirm another record high. Another bull run would force more bears to close out and challenge the next target at 20000, raising the odds of a bullish continuation. The level of 19600 is the first support to assess the strength of follow-up buying.
EURUSD attempts to hold onto gains
The euro slid after PMI data across the eurozone failed to progress from previous readings. A recent bullish run was halted at the 1.0600 level, potentially putting the pair on a reversal course. The next step is to see how vital follow-through interests will be. The RSI’s move towards the oversold region has attracted some bargain hunters. 1.0430 is a significant level to sustain the momentum, and a jump above 1.0580 would confirm the bullish bias.
GBPUSD probes resistance
Cable steadies as manufacturing PMI data remained subdued as traders await the next signal. The pair has met stiff selling pressure at 1.2750, and the current retreat is a test of the buy side’s commitment. 1.2650 at the base of last Friday’s bullish candles is the first level to expect renewed buying interests as the RSI recovers into the neutral area. The bottom at 1.2500 is a second line of defence in case of further hesitation, while 1.2710 is the immediate resistance at a rebound.
