UK 100 probes support
The FTSE (UK 100) continues to fall as the worry over higher energy prices weighs heavily on investors.
- The latest downturn looks for support as profit-taking and bargain hunting send the index lower.
- 10400 is the next test lower, and a bearish breakout could extend the rally.
- However, a jump above 10560 could cause a reversal towards 10740 at the previous swing high.
USDCAD tests major resistance
The US dollar remains in an uptrend after a brief dip to test 1.4200.
- Prices are now testing the 1.4280 area, a major ceiling that so far has capped the greenback’s advance.
- A breach would signal the bulls remain in the game, with 1.4350 a potential target.
- As the RSI shows a pullback, this is a test of buyers’ resolve, with 1.4200 as the first support and 1.4120 as a second layer.
AUDUSD stuck sideways
The Australian dollar clawed back losses after the September sell-off threatened to drive prices lower.
- The pair is looking to move back towards 0.7030.
- A preliminary bounce at 0.6950 is pushing some selling interest out of the way.
- 0.7000 is a major resistance to lift to instil confidence and open the door to a broader rebound.
- On the flip side, a slip below 0.6950 would trigger a sell-off towards 0.6900.
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