Dow(US 30) looks for reprieve
The Dow(US 30) continues its choppy trajectory as the hesitant sentiment remains the same. The 900-point fall has been met with stiff selling pressure below the daily resistance of 43800. With a bearish divergence appearing on the RSI, traders are already fearing a complex correction as another sell-off is likely. 43300 is a key support at the lower end of the recent bearish spike. Its breach would send the index to the critical floor at 43000.
USDJPY grinds support
The Yen remains consolidated as prices hit firm support after the recent collapse in price action. The 149.00 level has been acting as a tricky support, which has prevented the pair from heading lower. A tentative below 148.60 would expose the downside risk and potentially the daily support of 148.00. With an undecided RSI, this could limit the range of the initial fall for now. A spike above 150.00 could be the catalyst for a turnaround with a move back towards 151.45.
EURGBP pulls back
The euro stalled after Germany’s consumer confidence fell deeper into negative territory. On the chart, the pair is making another attempt to hold at the recent support of 0.8260. A break below this support combined with a potential bearish divergence could reinforce the downward bias. Though a correction cannot be ruled out as a slight uptick in prices, recently, we saw a test above 0.8300. 0.8355 is the first demand zone should this happen.
