AUD/USD tests major supply area
The Australian dollar stays high as traders remain hopeful of a dovish Fed pivot. A tentative break above last August’s high of 0.7130 further fueled the bulls’ enthusiasm and could lay the foundation for an extended reversal to 0.7270. In the short-term, the RSI’s bearish divergence indicates a slowdown in the momentum and could be significant as the price flirts with the supply zone. 0.7060 is the first support and 0.6960 at the base of a bullish breakout and on the 20-day moving average is a key level in case of a deeper correction.
EUR/GBP drifts lower
The pound edges higher as traders expect hawkish dissent within the Monetary Policy Committee. On the daily chart, the pair is trying to hold on to its gains after clearing the supply zone 0.8820-0.8850. Regarding intraday levels, the latest surge came to a halt at the former hourly support of 0.8850 and a drop below 0.8770 is a sign of weakness. 0.8800 is now a fresh resistance and 0.8730 a critical level to keep the single currency afloat. Its breach could push the bulls to abandon ship and send the price below 0.8690.
Dax 40 consolidates gains
The Dax 40 steadies as investors eye the Fed and ECB duo’s decisions. On the daily chart, the index is still hovering in the February 2022 sell zone around 15240. The RSI’s double top in the overbought area and a brief venture below the psychological level of 15000 has shaken out the weaker hands. A close back above 15240 would signal renewed strength and momentum buying could drive bids towards 15600. Otherwise, 15070 is a fresh support along with the recent swing low of 14900 as a second layer of defence.
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