AUDUSD grinds support
The Australian dollar (AUD) found some firm resistance as risk appetite remains volatile across all markets. The latest move higher towards 0.6300 met stiff selling pressure, and prices are at a major crossroads as it tests the recent double bottom of 0.6220. A bearish continuation would trigger a wave of liquidation and send The Australian dollar (AUD) to the base of the year-end low at 0.6180. On the flip side, a bullish close might extend the gains to test the recent high again.
EURGBP stuck sideways
The euro failed to move higher as inflation numbers crept higher. The pair continues to struggle for bids as it approaches the recent low of 0.8265. The RSI’s muted condition on the chart could attract some bargain hunters, but they will need to lift offers to around 0.8330 to ease the pressure first. 0.8700 would be the foremost hurdle to go before short-term sentiment could turn around. On the downside, a breakout could lead to a bearish reversal towards December’s low at 0.8220.
GER 40 holds onto a new high
The Dax recovered to a new high as investors await the ECB’s policy for the new year. An extension above 20000 has set the course for a fresh all-time high towards the psychological level of 21000. The sentiment is overwhelmingly positive, but the vertical climb also has propelled the daily RSI well into the overbought area, which suggests that a pullback could be due to letting the bulls catch their breath. 20200 is the immediate support for the index to hold onto its gains.