GER 40(DAX) breaks higher
The GER 40(DAX) remains bullish as investors eye the Fed and ECB decisions. On the chart, the index broke through another resistance to move past the 22600 resistance level. The RSI’s overbought nature saw a bearish divergence being ignored as price action now tests the 23000 handle. A close above this level would signal renewed strength, and momentum buying could drive bids towards 23250. Otherwise, 22800 is a fresh support, along with the recent resistance at 22600 as a second layer of defence.
AUDUSD inches higher
The Australian dollar continues to move higher, and this month, over 200 pips have been added to the pair. A tentative bounce off the 0.6300 handle has fuelled more enthusiasm and could lay the foundation for an extension to 0.6420. In the short term, the RSI is moving into bearish divergence territory, which could indicate a slowdown in momentum. 0.6325 is the first support, and 0.6250 at the base of the latest breakout is a key level in case of a deeper correction.
EURGBP continues to slide
The Euro edged lower as traders expect the bearish trend to continue. After falling away from the 0.8500 level, the bulls now look for support. Regarding intraday levels, the latest slide came to a halt at the former hourly support of 0.8260. But a drop below this and the sell off could continue to December’s lows below 0.8225. Any signs of a turnaround need to be moved past 0.8300 and then 0.8390 to test the previous swing high.