(US 30) The Dow Jones looks for reprieve
(US 30) The Dow Jones continues its choppy move higher amid hesitant sentiment. The 1000-point jump has been met with stiff resistance just below the daily resistance of 48000. With a bearish divergence appearing on the RSI, traders are already fearing a complex correction as another sell-off is likely. 47200 is a key support at the lower end of the recent bearish spike. Its breach would send the index to the critical floor at 46200.
USDJPY hitting higher highs
The Yen remains downbeat as prices hit higher highs to confirm the bullish trajectory. At the moment, the 158.80 level has been acting as tough resistance, preventing the pair from heading higher. A tentative move below 158.00 has exposed downside risk, potentially including the daily support at 157.00. With an undecided RSI, this could limit the range of the initial fall for now. A spike above 158.00 could be the catalyst for a turnaround with a move back towards 158.80.
EURGBP remains subdued
The euro continues its bearish run, with over 100 pips wiped off its value so far this month. On the chart, the pair is making another attempt to hold at the recent support of 0.8650. A break below this support, combined with a potential bearish divergence, could reinforce the downward bias. Though a correction cannot be ruled out, a slight uptick in prices recently saw a test above 0.8660, and 0.8710 becomes the target should this happen.