The S&P(SPXX 500) loving higher
The S&P(SPXX 500) attempted to stop the rot as prices bounced higher after this month’s bearish rally. With a gap moving above 5500, traders will once again question if a reversal is going to happen. A test at 5650 sees a slight pullback, but if stocks can start performing again, there is no reason why this level cannot be broken. The RSI is showing some signs of lifting away from the oversold area, but a break below 5400 will be another sign that this prolonged bear run will continue.
USDJPY hitting double top
The dollar clawed back some losses as traders look towards this week’s double dose of interest rate decisions from the Fed and the Bank of Japan. On the chart, the pair is testing a double top at the 149.00 level. 147.80 is fresh support, and 146.50 and the recent bottom is the next line of defence for bulls. A close above 149.50 would resume the rally, with this month’s swing high towards 151.00 the next target.
EURGBP attempts to bounce
A hold at the latest support has seen a bounce in price action for the Euro. A previous sharp drop below 0.8400 threatened to invalidate the previous bounce, as bulls now look for another upswing. The double bottom at 0.8370 has seen a slight 30-pip move, giving hope that another bullish rally has begun. However, a bearish breakout could pave the way for a reversal below 0.8340. On the flip side, should 0.8430 be broken, then a fresh high above 0.8450 could be in sight.