USDJPY awaits bearish divergence
The Japanese yen struggled as USD CPI data came in hotter than expected. The pair’s latest push moved over the psychological level of 150.00, which now acts as fresh support. A subsequent break above 150.60 indicates solid commitment from buyers. A close above 151.10 would attract momentum buyers and send the pair to the previous swing high at 151.90. An overbought RSI looks to bring in a bearish divergence, and 149.50 is crucial to keep the optimism going.
EURAUD grinds consolidation
The Australian dollar held firm as a choppy consolidation ensued. A close below 1.6550 has put bulls on the defensive. A previous rebound halted at 1.6600, suggesting more downward pressure. As traders await the next bounce with the pair, a bearish breakout could trigger a sell-off towards 1.6400. On the upside, any chance of breaking the consolidation zone requires a move to 1.6650 to test the previous false break.
US30 looks for rebound
The Dow Jones 30 dropped over 500 points as traders digested the latest CPI reading. The chart shows that the index is looking for some retracement as price action moves back to 38400. A break here could look for a full recovery in the medium term. The general sentiment remains bearish since the Fed will probably begin cutting rates. The bounce around 38200 has kept bulls in check, but its breach would force bears to open the door to an extended rally to last month’s low at 37200.
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