S&P(SPX) 500 inches lower
The S&P(SPX) 500 remained subdued even after a decent reading from the latest inflation figures. As the index flirts with a fresh low at 5760, the market is looking ahead to Donald Trump’s inauguration next week. Further selling could be expected as buyers could look to take some chips off the table while sellers await to see if there will be another test at 6000. 5600 is the immediate support to gauge trend-followers’ commitment, and 4380 would be the bulls’ second layer of defense in case of a deep correction.
AUDUSD holds onto gains
The Australian dollar edged higher after the latest break to the upside saw a test at the 0.6200 level. A decisive bounce above 0.6160 was a significant hurdle to clear so that the recent bearish rally did not return. However, a pullback in the near term cannot be excluded to let the bulls consolidate their gains before they can push for a new high above 0.6280. Firstly, 0.6200 is an essential level for maintaining momentum.
EURGBP bounces back
The pound struggles as the prospect of more economic unrest lingers. Even though the price previously hit resistance at 0.8450, it has found strong support at 0.8380, and a bullish breakout has prompted sellers to cover their positions. This suggests that sentiment has remained optimistic and would pave the way for a sustained recovery towards September’s peak above 0.8500.