The Dow Jones recoups losses as investors expect some leeway for President Biden’s fiscal plans.
The index has found support at 33700. There have been three consecutive tests at this level which is a sign that buyers remain in control of the price action. A rally back above 34150, the base of the latest sell-off could convince traders of the underlying strength.
A new high at 34400 would be the next target should momentum picks up. As the RSI ventures again into the overbought area, 33700 is a critical support in case of a pullback.
GBP/USD retreats in search of support
The pound is looking for support after a better-than-expected PMI suggests economic resilience.
The latest sharp sell-off came from the psychological level of 1.4000, also a major resistance on the daily chart. Its breach could revive the thirteen-month-long uptrend.
As for now, an oversold RSI has prompted some short-covering. 1.3810 is the immediate support to test the strength of rebound.
Further down, 1.3720 will need to see solid buying interest to save the chance of a reversal.
EUR/AUD tests key supply area
The euro climbed back after the euro zone’s service PMI recovered to 50.3. The previous sell-off has met robust support at 1.5420. The subsequent rally above 1.5530 suggests that buyers are still committed to pushing higher.
The price may test the supply area at 1.5670 for the third time. Profit-taking from short-term traders would be expected.
A bullish breakout may trigger a broader recovery as the short side rush to cover their bets. On the downside, 1.5500 would be a key support to monitor.
This information has been prepared by Orbex, a trading name of Orbex Group Limited. DrForexOfficial, will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.
Trading CFDs on leverage involves significant risk of loss to your capital.
Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. The Website should not be relied upon as a substitute for extensive independent market research before making your actual trading decisions. Opinions, market data, recommendations or any other content is subject to change at any time without notice. DrForexOfficial, will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Read our full legal disclaimer.