USD/JPY drifts lower
The US dollar slips as traders expect a modest 25 bp hike from the Fed amid banking troubles. A drop below the recent swing low of 132.40 has invalidated the rebound and put the pair back on a bearish trajectory in the short-term. The breach of 132.00 may attract more selling interests. The psychological level of 130.00 is a daily support and the start of a breakout rally back in early February, making it an important level to expect the bulls to fight back. On the upside, 133.80 is the first hurdle to lift in case of a bounce.
UK Oil grinds critical floor
Brent crude tumbles over concerns of a hard-landing for the global economy. The latest sell-off has sent the commodity below December’s low of 75.50, renewing the downward pressure in the medium-term. The price is now hovering above the psychological level of 70.00. The RSI’s deeply oversold condition has led bears to take some chips off the table, driving the quote up momentarily with 78.50 as the first test. Meaningful buying may only emerge if the price manages to gain a foothold through a series of higher lows.
DAX 40 heads lower
The Dax 40 creeps lower on bank contagion fears in Europe. A bearish MA cross on the daily chart is a worrying sign that the index could be turning lower after failing to stay afloat above 15000. A timid rebound from 14900 has struggled to make a difference, which suggests that the path of least resistance could be down. A drop below 14700 may cause momentum selling, opening the door towards 14400 and potentially 14000 near January’s lows. Only a close above the supply zone around 15250 would turn the mood around.
