SPX 500(S&P) drops lower
The SPX 500(S&P) opened the new week lower after the market continued to digest Donald Trump’s trade tariffs. If price action stabilises and hits a bottom around 5000, a series of higher lows could help the index claw back previous losses. However, with a continued sell-off expected, this could lead to bulls shifting their attention below the 5000 level. With the RSI sliding into the oversold area, 5050 is a key support to keep any recovery valid.
EURGBP hits another high
The Euro maintained its dominance over the pound as price action jumped another 100 pips. The pair has bounced off this month’s low around 0.8340, and a surge above the key area of 0.8500 prompted sellers to cover positions, easing the downward pressure. As the RSI remains in the overbought area, the next step is to see if a pullback will ensue. A close above 0.8550 would attract more momentum buyers and extend the rally. Otherwise, bulls would look at 0.8450 as the first support.
XAUUSD remains above $3k
Gold kept its composure after briefly dipping below the psychological level of $3000. The RSI’s double top in the oversold area suggests that a bounce higher is likely. On the chart, 2980 is fresh support as a recent bounce looks to test the 3050 area. Further down, 2960 would be the bulls’ second layer of defence. A pop above 3065 would resume the climb and prevent a deeper correction.