GER 40 stuck in a bull channel
The Dax (GER 40)continues its choppy upswing after rising once again from the lower 26000 area.
- Prices continue to capitalise on its break above the psychological level of 26000.
- As the RSI drops back into the neutral area, 26100 is the first level to expect follow-through bids, as 25800 remains a critical floor.
- Another test at the recent peak of 26600 would require the index to maintain its composure above 27000.
USDCHF bounces lower
The US dollar triggered a sell-off after losing another 50 pips in value.
- Following a pop below the next psychological level of 0.8100, a brief pullback has been contained.
- A further move lower would signal that bears have regained control of price action and opened the door to a test at 0.8060.
- 0.8000 is the next target to confirm a deep continuation.
- A move higher would need a break above 0.8150 to turn things around.
GBPUSD hits another peak
Cable finds buyers as its latest bull rally moves over 100 pips.
- The latest move has met bids past the 1.3500 region as traders look towards the 1.3600 level.
- A bearish RSI divergence could indicate a slowdown as the pair looks to catch its breath.
- 1.3480 is the first hurdle lower, and its breach would make the pair retest the recent low of 1.3420.
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