Dow Jones (US 30)feeling the pressure
The Dow Jones (US 30) slid further as Donald Trump’s trade war escalated. The support found at 41200 could suggest the tide is turning, and a move above the recent swing high of 41750 could test another fresh peak in the near term. A falling trendline has been supporting the bearish rally in the past few weeks, and 41000 is an essential level for keeping the trajectory higher. Its breach could trigger a move past 39600 unless buyers enter the market.
AUDUSD another lower low
The Australian dollar attempted to take another step higher as interest in the greenback continued to falter. Prices remain limited below 0.6300 as the current trend signals a bearish channel, which has seen the pair slip away from its previous peak. However, the RSI’s move away from the overbought zone could attract some buying interest. 0.6320 is the closest hurdle, and bulls will need to break 0.6360 before they can turn short-term sentiment around. A drop below 0.6260 would extend the current trend towards 0.6200
USDCHF gaining momentum
Following a bounce off 0.8760, the dollar looks for a move higher as the turnaround begins. The psychological level of 0.8800 is a key level to keep the momentum intact. A move above 0.8850 would send the greenback to the daily resistance at 0.8935, paving the way for a full-fledged bull rally in the medium term. Failing that, a bearish breakout would trigger a retest of 0.8760 and then a potential slide lower towards 0.8700.