By Orbex
EURUSD tests demand area
The US dollar treads water ahead of the Fed meeting. After a limited rebound, the euro’s fall below 1.1750 has put the bulls on the defensive.
The pair is testing the demand zone around 1.1700 with the lower boundary being the critical daily support at 1.1660. A bullish RSI divergence suggests that the sell-off might be losing steam.
We can expect buying interest in this congestion area as the indicator climbs back into the neutrality area. 1.1790 is a key hurdle to clear before a meaningful bounce would happen.
GER 40 rebounds from daily support
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The Dax 40 whipsaws due to the risk of contagion from Chinese real estate developer Evergrande defaulting.
The tentative break of the daily support at 15050 has put leveraged buyers under stress. A combination of short-term profit-taking and buying-the-dips mentality has triggered a sharp rebound.
15520 is the first resistance ahead, then the bulls will need to lift 15800 to make a turnaround. In the meantime, an overbought RSI may limit the V-shaped rally. 15020 is fresh support in case of a relapse.
SPX 500 attempts rebound
The S&P 500 surges back as investors bet on the Fed’s patience for tapering.
The index has found support above the psychological level of 4300. The close above the immediate resistance at 4405 may prompt sellers to cover, though the plunge below the daily support at 4360 has dented the bullish sentiment.
As a deeply oversold RSI makes its way back up, patient buyers may wait for price action to stabilize first before staking in. 4310 is fresh support. On the upside, selling interests may gather around 4475.
Article by Orbex
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