Nasdaq(NAS100) slips from record
The Nasdaq(NAS100) fell lower as America moved to tighten restrictions with China. The rally higher took a step back after crashing through the 22000 level as traders now look for a test at 21000. However, the RSI’s fall could open a bullish divergence, leading to a move back to 21500. If the pressure does remain, bears will have an easy choice to stay in the market, with 20600 the next target at the base of the previous rally.
GBPUSD tests resistance
The pound attempts to break the latest resistance as prices remain heightened. The near-term outlook supports the recovery theme after the pair bounced back towards 1.2700. The recent surge could look for signs of retracement if a close above 1.2680 is confirmed. On the hourly chart, a break below the firm support of 1.2600 would lead to 1.2520 as the RSI remains upbeat in the overbought area.
USDCHF hitting lower lows
The Swiss Franc is another currency benefitting from a weakened dollar as prices slipped lower. On the chart, the pair is hitting multi-month lows as a break through the psychological level of 0.9000 attracted more short-term sellers. Price action has led to another dip into the oversold zone for the RSI as bulls look for a reprieve. 0.8960 is the first hurdle ahead, with 0.9040 seeing a limited push. A fall below 0.8900 would expose further lows.
