NZDUSD seeks support
The US dollar bounces as traders reposition ahead of today’s CPI. On the daily chart, a break above the first resistance at 0.6550 and a MA cross suggest that the market mood may have brightened up. However, a pullback below 0.6420 has put short-term buyers under pressure. 0.6320 at the base of the initial breakout is the next level to gauge buying interest. An oversold RSI may trigger a ‘buy-the-dip’ behaviour. But the bulls will need to lift offers at 0.6460 and then 0.6530 before the rally could be back on track.
EURAUD bounces higher
The euro soared after the ECB said it would kick off its rate hike cycle next month. The pair previously saw solid support at the double bottom at 1.4780. A break above 1.4910 has prompted sellers to cover their positions. The follow-up rally is a confirmation of a sustainable rebound. 1.5160 from the liquidation in late May is a key resistance. Its breach could turn sentiment around in the medium-term and extend the reversal above 1.5280. In the meantime, the RSI’s overbought situation may cause a brief fallback towards 1.4890.
US 100 struggles for support
The Nasdaq 100 weakened after US jobless claims hit a five-month high. The index is struggling to hold onto its gains after it rose above the daily resistance at 12580. A drop below 12400, a former supply zone that has turned into a demand one, indicates a lack of commitment from the buy side. A combination of profit-taking and fresh selling may depress the price action to the psychological level of 12000. 12650 is the closest resistance and 12920 a major ceiling before the rebound could make a comeback.
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