US 30 (Dow Jones) jumps higher
The US 30 (Dow Jones) jumped higher over mixed CPI data as Core inflation dropped. On the chart, the RSI is flirting with 90, suggesting an extremely overbought condition as the index breaks fresh highs. 43250 has been established as a new milestone after bullish trend followers piled into a unidirectional market. However, sentiment could shift to a more cautious side as liquidity becomes thinner as we head into the weekend. 42750 is a significant level to test the bulls’ commitment.
GBPUSD another lower low
Cable remained under pressure after a weak reading from the latest GDP data. The price was looking to consolidate its gains after bouncing away from the recent bottom at 1.2100. The firm rejection came at 1.2310 as buyers bailed out and sent the price 100 pips lower to now test the 1.2200 level. As the RSI drops back into the neutral area, 1.2150 is the next test to the downside to see if trend-followers have a stake in it, with the hope of a continuation. For more conservative buyers, a clear cut above 1.2350 could extend gains towards 1.2430.
USOIL waiting for a correction
WTI continues the bull run as traders wonder if a correction is around the corner. The price continues on its trajectory from last December’s lows near 68.00. 81.00 is a key resistance ahead, and its breach would reinforce the optimism and lay the foundation for a continuous run above 83.00. On the downside, 78.30 is the immediate support in case of a fallback as the market prepares for Donald Trump’s inauguration next week.