GER 40 (The Dax) licking its wounds
GER 40 (The Dax) edges higher as the recent sell-off in the index market casts a shadow on a potential recovery.
- A strong indication of the underlying bearish mood could cap prices from breaking out towards a fresh high.
- A brief pullback has seen a few points put on the board, but the overall rhetoric is that the Dax is heavily pressured.
- A drop below 24800 would send the index towards 24500, as 25600 is the first target higher.
USDJPY hit firm rejection
The dollar is trying to see some light at the end of the tunnel, with hope that sentiment shifts again.
- A rejection at the recent double top around 162.75 showed a continuous bearish drive, shedding over 100-pips, keeping sellers in the driving seat.
- July’s swing low below 161.00 is the next target, as a confirmation break past 161.60 is needed first.
- 162.00 is fresh resistance, and 162.75 is a major level to recoup the bullish bias.
EURGBP continues to run away
The pound advanced further as the bearish rhetoric continues to play out. However, the rally seems to have halted as the pair has found some support at 0.8510, suggesting that bulls could buy into strength if sentiment shifts.
- Only a break above 0.8560 would open the door to a meaningful continuation higher.
- 0.8500 is a critical level to see if prices can hold onto some support.
- A move lower towards 0.8470 would be on the horizon.
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