USD bounces back
|USD/CHF awaits breakout
The US dollar bounces higher as traders bet on the Fed to stay on an aggressive tightening course. With the double top (0.9860) now out of the picture, the directional bias remains up as the greenback consolidates its gains over the 20-day moving average. The narrowing range between 0.9740 and 0.9950 could be a sign of accumulation. A bullish breakout would lift offers back to June’s high at 1.0040, a step closer to resume the uptrend in the medium-term. However, a deeper correction would bring the pair to 0.9620.
EUR/JPY seeks support
The euro weakened after the ECB minutes showed that a recession was "increasingly likely". A break above 143.50 the origin of a previous liquidation has prompted sellers to cover their bets. This is an indication of strong interest in maintaining the euro’s lead. As the RSI drops back to the neutral area, the former supply zone around 141.40 is the first level to gauge follow-up bids. A bounce would carry the single currency to the recent peak at 145.50. Otherwise, the pair may drift towards 139.30.
S&P 500 attempts to bounce
The S&P 500 treads water ahead of the nonfarm payrolls report in September. The index has been looking to claw back some losses after its drop below the critical floor at 3750. Sentiment remains downbeat though there could be short-term opportunities in the current recovery. A rally above 3670 has eased the selling pressure, turning it into a fresh support. 3900 is a major hurdle where the bears could be expected to double down. The bulls will need to clear this supply area before a rebound could gain traction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.