NAS100 index more records, more worries
The NAS100 index continues to close in positive territory as investors ignore President Donald Trump’s warning of more tariffs. As the ripple effects of a strong earnings season linger, traders worry that a correction is around the corner. With the RSI continuously in overbought territory, traders are wary of a strong retracement as 22400 becomes the immediate resistance and 21850 the first support.
EURUSD fears remain the same
The Euro moved away from breaking its recent peak as the choppy price action continued. Flash PMIs from last week failed to spark much life into the pair as the dollar looks to the next tariffs to be imposed by the new President. Trump referred to a potential new trade deal with China, which smoothed some concerns but temporarily weighed on the greenback. This week, the acid test will be conducted to see if the Euro can move past the 1.0500 resistance as the pair heads towards 1.0350 support.
GBPUSD awaits next ECB decision
The pound remains steady as inflation figures ticked higher in last week’s reading. With no high-impact fundamental news events coming out of the UK this week, it will be all eyes on the dollar to see which direction is next for the pair. The dollar’s broader weakness does not mean that Sterling is in a better shape, as the Bank of England is looking for the next rate cut. What worries traders is that the UK economy is more brittle than its US counterpart. The pair is testing 1.2650 with 1.2430 as the closest support.
