AUDUSD hitting new highs
The Australian dollar (AUDUSD) was up for another session before a heavy price rejection at the 0.7100 region.
- Price action has fallen around 30 pips but remains elevated above the 0.7100 level.
- 0.7070 is an important support as its breach would prompt more buyers to take profit.
- A continuation of downward pressure would see a test at the 0.7020 area.
- 0.7140 is the immediate target higher to keep any chances of a rebound intact.
EURJPY clawing back losses
The Euro looks set to regroup after the recent Yen intervention, with prices moving more than 500 pips higher so far.
- As the price hovers above 185.00, the RSI’s overbought situation could cause a pullback.
- Sentiment remains extremely upbeat, and bulls could look to keep the direction intact.
- The psychological level of 186.00 is the first level to expect follow-through bids.
- 184.50 is the first support, with 182.70 looking like a major support to monitor.
UK 100 hitting more troughs
The FTSE struggles with momentum despite muted unemployment data.
- Sentiment has turned cautious after the index saw another firm rejection around the 10780 level.
- A bounce above the first resistance could prompt short-term sellers to close some positions, before the index can enjoy a broader recovery.
- 10700 is a major level to prevent a deeper correction.
- A break past 10780 would leave buyers open for a move towards 10920.
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