USDJPY breaking double top
The dollar continues its bull rally as prices test the psychological level at 160.00. On the chart, the pair is testing a double top and looking to extend gains as traders close their gold positions and focus on the greenback. On the flip side, 159.20 is a fresh support, and 158.40 at the recent bottom is the next line of defence for bulls. A close above 160.00 would resume the rally with the next swing high towards 160.50, the next target.
EURGBP attempts to bounce
A hold at the latest support has led to a bounce in the Euro’s price action. A previous sharp drop below 0.8650 threatened to invalidate the previous bounce, as bulls now look for another upswing. The double bottom has seen a slight 40 pip move, giving hope that another bullish rally has begun. However, a bearish breakout could pave the way for a reversal below 0.8620. On the upside, should 0.8680 be broken, then a fresh high above 0.8720 could be in sight.
S&P (SPX 500) hits critical floor
The S&P (SPX 500) attempts to stop the rot as prices found some support after this month’s bearish rally. With a hold at 6470, traders will once again question whether a reversal is going to happen. A test at 6500 will see a slight pullback, but if stocks can resume performance, there is no reason this level cannot be broken. The RSI is showing some signs of lifting away from the oversold area, but a break below 6470 and a move towards 6350 will be another sign that this prolonged bear run will continue.
