USDCHF finds support
The US dollar attempts to claw back some losses after the November sell-off came to a halt. The pair is in search of buyers after treading water at the mid-0.7900 area. 0.7880 at the base of the latest bullish breakout is critical to see if buyers are still committed. Otherwise, a deeper correction could push the greenback below 0.7800. On the upside, the psychological level at 0.8000 is a key level to clear to turn the short-term mood around and resume the climb.
XAUUSD testing $4,000
Gold kept in the game after avoiding a move below the psychological level of 4000. The price has so far found a foothold at 4050, following last week’s sell-off, as a bullish RSI divergence indicates that bulls remain in the game. 4100 is the resistance that needs to be cleared to interrupt the bearish drive and lay the foundation for a sustained recovery, with 4040 being the all-important support in case of a pullback.
FTSE (UK100) beings consolidating
The FTSE (UK100) is testing a firm support to prevent any further sell-off on the index. After dropping a few hundred points, a continuous bearish breakout would put pressure on the remaining bulls. A break below 9600 could lead to a potential bearish continuation towards 9520. In the meantime, the RSI’s oversold condition could cause a retracement towards 9760, should intraday sellers start to take some chips off the table.
