GER 40 (DAX) seeks support
The GER 40 (DAX) attempts to claw back the recent losses as prices bounce away from the 20000 level. A move above 20400 is the next target. However, a failure at this level would be a sign of exhaustion as the index pushes for a fresh peak. With the RSI undecided, short-term bulls could be reluctant to chase the bids. A fall back below 20000 will prompt some leveraged positions to close, and a dip below 19700 will confirm the weakening impetus, sending the index to a lower level.
EURUSD picking up the pace
The euro pulled higher after bouncing away from the 1.0200 level. The pair is testing once again the 1.0300 area as price action attempts to get back on track. From the start of the year, a combination of profit-taking and fresh selling has limited the bullish fever. However, a breakout could force the remaining sellers to abandon the ship and open the door to an extension to 1.0340. With the RSI back in the neutral area, bargain hunting could be expected. 1.0235 is a significant level at which to see follow-up buying.
NZDUSD breaks higher
The New Zealand dollar holds onto its recent gains on improved risk sentiment. A convincing break above 0.5560 has put the Kiwi back on a bullish trajectory following a recent downturn. 0.5700 is the next threshold before the price could advance further. A brief sideways action might be what the bulls needed to catch their breath after the RSI showed a move towards the overbought territory. A hold at 0.5550 is crucial to maintain the bullish trajectory.
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