US30 (Dow Jones) breaks higher
US30 (Dow Jones) is looking to recoup its recent losses with a climb back above 40000. The index is in a wait-and-see mode, with traders reluctant to take excessive risks ahead of further announcements by the White House. On the chart, a close above 39200 is a sign that the market’s optimism has taken hold. A brief consolidation has allowed bulls to hold on to their gains. 3900 at the lower end of the recent gap would be the Bulls’ second line of defence in case of a correction.
EURUSD bounces lower
The euro fell lower after the dollar bounced back as President Trump signalled for improved trade negotiations. After bouncing off the daily swing high of 1.1550, the pair is striving to move towards the 1.1300 level, which was recently tested by a false spike. A close above 1.1430 would show that buyers are still committed, potentially giving bulls a decisive edge. 1.1340 is a major floor, and another test at 1.1300 is expected.
NZDUSD hitting double top
The US dollar started to gain some momentum over the Kiwi as the pair attempted to halt the upward progression since the beginning of the month. 0.6000 has once again proved to be a tough level to crack after the first two bullish attempts. A drop below the recent support at 0.5920 could prompt more buyers to bail out. Failing that, moving higher above 0.6000 is a critical level to keep the pair afloat, as its breach would make the Kiwi look for a full retracement to last week’s lows.