USDJPY looking for another low
The dollar stopped short of turning things around after last week’s intervention by Japan’s Ministry of Finance.
- The pair heads towards 157.00 as traders look for a confirmation break at this level.
- 157.40 is the level to see if more bears will step in before the pair extends lower.
- The RSI’s move towards the oversold area could see a test at 159.00, before a possible lift towards 160.75.
EURGBP hits rejection
As the pair hit a new low around 0.8550, a potential bullish divergence on the RSI suggests a loss of momentum as prices find some support.
- A break below 0.8550 would provide confirmation and prompt more buyers to cover.
- The former support of 0.8480 could be the last obstacle standing in the way of a substantial sell-off.
- On the upside, a spike above 0.8600 would undermine sellers’ efforts and trigger a rally to test the previous high above 0.8660.
US 30 Index tests daily support
The Dow holds steady as the market digested the recent Fed announcement.
- Spikes in price action suggest the index is testing the previous swing low around 52000.
- The top of a limited bounce at 52600 is the first hurdle to clear.
- In case of a bearish breakout, a move past 52400 opens up 51800 at the base of the breakout rally.
