The S&P 500 index stays under pressure after a decline on Friday due to the publication of poor reports of a number of technology companies. Thus, Intel lost more than 8% of its market capitalization against poor sales data.
On D1 chart the instrument is trying to consolidate above the strong resistance level of 69.50. Bollinger Bands reverse downwards, and the price range is reducing, which indicates the formation of the downtrend.
Different pace of monetary normalization in the USA and other countries made XAUUSD bulls hunker down
Yesterday, NZD grew moderately against USD and approached the highs renewed on July 26.
EUR grew moderately against USD, continuing the development of the “bullish” trend formed at the end of last week.
EURUSD bulls went ahead as the ECB willingness to retain the interest rate doesn’t match to the Euro-area economy’s expansion
Oil price reached the key resistance to the middle-term downtrend
The EURUSD had a bullish momentum yesterday topped at 1.1718. The bias is bullish in nearest term testing the upper line of the triangle formation and 1.1725 – 1.1750 region which is a good area to sell with a tight stop loss. Immediate support is seen around 1.1680. A clear break below that area could lead price to neutral zone in nearest term testing 1.1650 region or lower. On the upside, a clear break and daily close above 1.1750 would be a serious threat to the major bearish trend testing 1.1850 area.
The GBPUSD was indecisive yesterday. The bias is neutral in nearest term. Price is traded around the upper line of the bearish channel as you can see on my H4 chart below which is a good area to sell with a tight stop loss above 1.3215. Immediate support is seen around 1.3070. A clear break below that area could trigger further bearish pressure retesting 1.3000 psychological support area which remains a good place to buy with a tight stop loss as a clear break below that level would resume the major bearish trend testing 1.2750 region.
The USDJPY didn’t make significant movement yesterday. There are no changes in my technical outlook. Price has been moving back and forth in a 100-pip range area since last week. The bias remains neutral in nearest term. The inside bar bearish scenario triggered by a move below 110.75 remains valid and can only be invalidated by a move above 111.55, with nearest bearish target seen around 110.00 region.