The Dow(US 30) attempts to bounce back
The Dow(US 30) looks to hit another higher high as prices move away from the 42000 level. After the recent stock sell-off, a bounce off yearly lows prompted short-term buyers to enter the market. However, as the RSI sticks to the overbought area, bulls will be wondering how much more momentum can be created. 42750 is a key hurdle to clear before buyers can hope for a sustained recovery towards the recent peak. On the downside, a break below 42250 could open up a stiffer correction.
EURUSD sliding lower
The Euro retreated as the Dollar gained traction across the board. A break below the first support of 1.0900 eased the upward bias as bears managed to drop prices towards the mid-1.07 zone, which opened the door for an extension to a full correction. 1.0800 is a fresh resistance should the pair begin to consolidate. 1.0880 is the next key target in keeping a move higher valid; otherwise, a sharp reversal could be triggered.
NZDUSD tests support
The New Zealand dollar softened after the recent 100 pip drop. On the chart, the Kiwi came under pressure as prices fell through the 0.58 level, leading to a further collapse. In the hourly time frame, 0.5710 at the base of the latest bounce is an important support for measuring the strength of buying interest. With the RSI creeping higher, this could indicate that prices have found a bottom. 0.5770 would be the next stop on the way up, with 0.5810 seen as a fresh resistance.
