Nasdaq-100 claims fresh high
The Nasdaq 100 hit a fresh high as the tech stocks continue to rally. The index is capitalising on its break above 21000, attracting momentum buyers in this crowded trade. The psychological level of 22000 is the next threshold, and a convincing breakout could fuel the optimism. However, a bearish RSI divergence will reveal a deceleration in the underlying momentum, and a retreat cannot be excluded. 21500 is the closest support should the bulls start to take profit.
AUDUSD breaks resistance
The Australian dollar advances as the prospect of rate cuts boosts demand for riskier currencies. The pair has climbed back to a multi-week top above 0.6300, suggesting that the Aussie could have found a bottom at the January low around 0.6120. A bullish breakout would force the bears to abandon ship and pave the way for a sustained recovery above 0.6500 in the weeks to come. In the meantime, the rally could pause in this area if buyers take some chips off the table, and 0.6250 would be the immediate support.
NZDUSD recoups losses
Like the Aussie, the New Zealand dollar gained further traction after breaking through the firm resistance of 0.5650. The rally accelerated after clearing offers around 0.5700, and a series of higher highs indicates ongoing interest in keeping the Kiwi’s edge. The mid-December peak of 0.5780 is a significant ceiling, and its breach would signal a continued bullish rally. In the near term, however, the RSI’s double top in the overbought area shows an overextension. 0.5650 is the first support, and 0.5580 is the bulls’ second layer of defence.
