USDCHF tests crucial floor
The US dollar had a slight spring in its step as price action bounced away from the recent low. The pair is heading towards consolidation as sentiment remains mixed about the dollar’s path following the recent sell-off. A ‘buy-the-dips’ behaviour could be expected as the RSI creeps away from the oversold area. 0.7700 is the first hurdle to clear to test the recent top at 0.7780. Failing this, a bearish movement would trigger further liquidation and invalidate the latest rebound, leading to another test at 0.7620.
XAUUSD stepping back
Gold traders remain cautious over the next move after a dramatic sell-off in yesterday’s session. A fall below 5400 suggests that the bears are still in the game despite hitting another peak. Sentiment is positive from the chart’s perspective, and the precious metal could be looking to halt the slide before another rally. Buyers could see the current situation as an opportunity to accumulate to test 5600 again. A close below 5200 could resume the downturn to test the psychological support of 5000.
NAS 100 falls from peak
The Nasdaq bounced lower as investors digest the signals from the latest earnings data. The index has established 26200 as its latest peak after breaking 26000. But an overwhelmingly overbought RSI on the chart made short-term bulls think twice about holding their gains. A snapback below 25800 is seen as a sign of profit-taking as prices remain subdued. 25000 is the critical round number to prevent a deep correction.