The euro is still underwater
EUR/USD Breaks Critical Support
Euro struggles as Eurozone growth prospects dim. The pair remains under pressure after breaking through a short-lived congestion zone around 1.0770.
A bearish break below the March 2020 lows near 1.0650 (a major demand zone) could send the single currency to 1.0580. In the meantime, the double bottom of the RSI in the oversold territory could trigger a buying behavior on the dips.
1.0750 is a new resistance and breaking it could ease the selling pressure. Bulls need to break through 1.0840 before they can regain control.
AUD/USD sees a limited rebound
The Australian dollar rallies on a better than expected first quarter CPI reading.
A break below the March low at 0.7170 may have invalidated the recent rally and put the Aussie on a reverse course in the coming weeks. A bearish MA cross on the daily chart indicates downward acceleration. An extremely oversold RSI on the hourly time frame prompted sellers to take profits, pushing the price up momentarily.
We would expect strong selling pressure around 0.7370. 0.7100 would be the next step in the event of a new sale.
FTSE 100 in trouble for offers
FTSE 100 drops as China lockdowns hit sentiment. A drop below the 7500 demand zone is further weighing on market sentiment after buyers failed to lift bids around this year’s peak at 7670.
The overextension of the RSI led to a rebound. Nonetheless, pessimistic sentiment capped the price at 7490 where a new wave of sales began.
Trapped buyers could scramble for the exit, aggravating existing selling interests in the process. A deeper correction below 7370 would send the index to 7250.