New Zealand dollar (NZD) breaks lower
The New Zealand dollar (NZD) fell lower after breaking the immediate support at 0.5580. The pair hit resistance at 0.5680, and a continuation is indicative of strong follow-through selling. The recent low of 0.5865 was the last hurdle, and its breach would prompt the remaining bulls to do so. On the upside, 0.5600 is the next target before another test towards 0.5700 to turn the short-term mood around.
EURUSD hoping for a rebound
The markets failed to react to the latest NFP numbers as traders gear up for this week’s inflation data. A previous spike towards 1.0200 forced some buyers to cover, and then a decisive surge could have put an end to the recent correction. 1.0350 is the next hurdle to clear before the euro could resume its climb above the recent peak at 1.0430. As the RSI shot into the overbought area, a temporary pullback would let the bulls catch their breath. The base of the recent bounce at 1.0265 is the immediate support to keep the current momentum going.
UK 100 tests another peak
The FTSE inches higher as investors expect the BoE to hold rates steady. The index continues to claw back losses from December’s sell-off, and a series of higher lows indicates more buying pressure. A further bullish breakout could resume the uptrend, and buyers will be looking towards the 8500 target to keep the bullish mood intact. Failing that, 8200 would be the first support, with 8120 as the second line of defense.
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