Dax (GER 40) continues the recovery
The Dax (GER 40) made more gains since the early April sell-off as the index kept on pushing higher. The break above 21000 suggests that bulls maintain control of the price action. The psychological tag of 21500 at the previous peak is next as a bullish continuation favours sentiment. In the meantime, the RSI’s repeated bearish divergence could temper the bullish fever, and 20800 would be the first support in case of a retracement
GBPUSD hits fresh peak
The pound holds onto gains after moving over 500 pips since the beginning of the month. A peak at 1.3280 has seen a slight correction as price action looks for another high. This move has seen the RSI drift towards neutral territory as traders await further signals. A break at 1.3250 to the upside could see another attempt to the previous swing high above 1.3300. Failing that, 1.3180 is the first support should the dollar show any signs of a pullback.
AUDUSD hitting resistance
The Australian dollar peaked at long-term resistance, which was short of the 0.6400 level. A surge above this target could have put the Aussie back on track against its US counterpart after a firm triple top. As the RSI falls away from the overbought area, another rally could attract momentum buyers and propel the pair towards 0.6450. On the flip side, a bearish breakout would dent the optimism and lead to a test at 0.6300 and then 0.6265.
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