USD/CHF attempts to bounce
The US dollar slipped after soft ISM manufacturing data in June. Following a pop above the psychological level of 0.9000, a brief pullback was contained at 0.8940, a key demand zone near a series of recent lows. A break above 0.9015 on the 30-day SMA would signal that the bulls have regained control of the price action and open the door to 0.9110 right under the May peak (0.9140), a last step before a broader recovery in the medium-term. On the downside, 0.8900 is critical in keeping the rebound mode intact.
GBP/USD tests resistance
Cable finds some support as expectations for UK peak rates exceed 6%. The latest retracement has met bids in the congestion area formed by the daily resistance–turned-support of 1.2600 and the 30-day SMA. A bullish RSI divergence indicates a slowdown in the sell-off momentum and may attract more long interests in this key demand zone. 1.2760 is the first hurdle and its breach would make the pair retest the recent high of 1.2850. Otherwise, a fall below 1.2600 would trigger a new round of sell-off towards 1.2500.
GER 40 probes support
The Dax 40 softened over a contraction in the region’s manufacturing activity last month. The price action continues to capitalise on its break above the psychological level of 16000. The support-turned-resistance of 16290 at the start of the mid-June correction could be sellers’ last stronghold as its breach would signal a bullish continuation towards a new all-time high. As the RSI drops back into the neutral area, 16000 near the base of the bullish breakout is the first level to expect follow-through bids while 15770 is a critical floor.
, a last step before a broader recovery in the medium-term. On the downside, 0.8900 is critical in keeping the rebound mode intact.){kind=link}