The SPX500 takes a step back as the ongoing rally loses momentum, while AUDUSD and EURJPY continue to face key technical levels.
AUDUSD tests support
The Australian dollar remains pressured as the greenback continues to push.
- The pair is still struggling to stabilise after touching the 0.7000 region.
- The RSI’s oversold reading could spark a limited rebound, giving the sell-off some breathing room.
- Fresh resistance could appear at the previous swing high of 0.7100 as bears focus on the downturn.
- But if a further bearish breakout ensues, 0.6920 would be a dividing line.
EURJPY hits double bottom
The Yen continues to outperform the Euro as a fresh low takes shape.
- As the rally extends, more trend followers could join and push the pair past the current support of 178.50.
- This area has been firm support, offering hope that price action will remain afloat.
- 179.00 will be a major target to reach as bulls look towards a complete turnaround towards 180.80.
SPX500 slides lower
The S&P took a deserved breather from the ongoing rally, as prices broke a recent winning streak.
- The index put the bulls on the defensive after falling away from an attempted record high.
- As the RSI moves away from the overbought area, 7640 is the level to see if prices can stabilise or a broader liquidation could follow, leading towards 7500. For the SPX500, this remains a key area to watch.
- 7800 remains a fresh resistance overhead as stocks look to regain their composure for another drive higher, while the SPX500 looks to recover its recent momentum.
