Hot Topics:
- Major currencies show bullish signals against the greenback.
- Indices recovers but more falls are expected.
- Pound crosses could turn bullish.
Major currencies show bullish signals against the greenback.
Forex Daily Market Update
The EURUSD broke up the flag pattern testing the 1.17 level resistance. Now the price is making a throwback to the congestion area. RSI also is showing bullish signals with the breakout and test to the flag structure.
GBPUSD looks like as its turning bullish. On the one hand, the price is making higher highs and higher lows. On the other, the RSI found support above the 40 level; this signal makes us foresee that a turning movement is near for the pound.
USDCHF is in a congestion zone between 0.9845 and 0.989. We expect a new bearish move to the region between 0.9784 and 0.9815. The shape of the price sequence that started on May 9th looks like a consolidation structure and is likely that the price could see new highs.
Indices recovers but more falls are expected.
FTSE 100 is recovering from the last selloff but is moving in the Potential Reversal Zone. RSI moves in an ascending channel but it still didn’t break the key level 60 to show bullish signals. Invalidation level is above 7,803.5.
In the same way as the FTSE, the DAX is moving in a consolidation structure as an ascending wedge. RSI is moving in the 51.53 level, but it doesn’t mean that in the short-term the trend is bullish, it suggests that the bias remains bearish and the price is making a retracement. Invalidation level is above 13,040.6.
Pound crosses could turn bullish.
GBPCAD is moving sideways and tested the monthly pivot level at 1.73191 becoming a relevant resistance. We think the cross could make a new low near the first weekly support at 1.71310, where the price could start a bullish cycle with a profit target at the weekly second resistance confluence area on 1.7510. Invalidation level is placed below 1.7065.
GBPAUD has been moving mostly bearish during this session, but we expect that the price could make a bullish reversal move in the area between 1.7360 and 1.73195, where it could bounce from, with the eyes placed on the weekly pivot at 1.76242. Invalidation level is below 1.725.
