AUD/USD tests resistance
The Australian dollar struggles as the RBA’s hawkish meeting minutes put a cap on risk appetite. The price action has fallen back to the consolidation area around 0.6800 from late December. The RSI’s double dip in the oversold zone has attracted some buying interests. 0.6930 is the closest hurdle and the bulls will need to lift the top of a previously faded rebound at 0.7010 before they could turn short-term sentiment around. A drop below the fresh support of 0.6810 would extend the correction to the year’s low at 0.6700.
USD/CHF bounces back
The US dollar consolidates its gains as money markets expect higher peak rates from the Fed. Following a bounce off 0.9150, a pop above this month’s high of 0.9290 has prompted the bears to trim their exposure. 0.9120 at the bottom of the latest rally is a key level to keep the momentum intact. A recovery above 0.9330 would send the greenback to the daily resistance at 0.9400, paving the way for a full-fledged rebound in the medium-term. Failing that, a bearish breakout would trigger a retest of 0.9150.
Dow Jones 30 hits resistance
The Dow Jones 30 steadies as traders await Fed minutes. A long upper wick in the supply zone near 34400 suggests rejection after the index struggled to grind higher. A drop below the swing low of 33520 has put the bulls on the defensive. A rising trendline has been supporting the choppy rally in the past two months and is an important level to keep the trajectory up. Its breach at 33480 could trigger a broader liquidation towards the daily support at 33000. 34000 is the first hurdle before the price could make its way back.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
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