EURGBP (Sterling) tests critical top
EURGBP (Sterling) was left licking its wounds after the Euro found another higher high on its way to another peak.
- The rally continued after a break above 0.8550 forced sellers to bail out.
- A move above 0.8570 would be a sign of strength, showing further commitment to keep the price afloat.
- Some bargain hunting might trigger a bounce as the RSI remains fully overbought with bulls aiming for the 0.8600 level.
- Otherwise, a bearish breakout would extend a pullback towards 0.8510.
NZDUSD attempts to break higher
The US dollar continues to drag the Kiwi lower as prices look for support.
- A previous move below 0.5800 prompted some buyers to trim their exposure.
- 0.5800 becomes the key obstacle to move before the pair can break free of its corrective path, potentially opening the door to 0.5870.
- Stiff selling could push the pair towards 0.5730, a critical support to stop the pair from slipping lower.
US 500 diving lower
The S&P 500 looks to break free from its current descending channel.
- A close below 7500 supports the bearish trajectory, with no signs of slowing down.
- A retracement could begin if short-term sellers take profit, as the RSI shows a clear bullish divergence.
- The pullback could be seen as an opportunity as medium-term rally players step in.
- 7300 is an important support if bears continue, otherwise, the target of 7500 could be on the horizon very soon.
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