Mon, Jun 05, 2023 @ 17:58 GMT
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USD Struggles to Bounce

AUD/USD tests key resistance

The Australian dollar soared after a hawkish RBA pressed on with a surprise 25 basis-point rate hike. The pair jumped above the first supply area of 0.6660 and might give the bulls a fighting chance after the selling pressure had seemingly taken over. The support-turned-resistance of 0.6720 is an important hurdle and its breach would pave the way for a more meaningful recovery above the recent peak at 0.6790. On the downside, 0.6620 is the immediate support and the double bottom at 0.6570 a critical floor.

NZD/USD rebounds higher

The New Zealand dollar jumped after the Q1 unemployment rate came out lower than expected. On the daily chart, the pair is striving to steer away from the danger zone near 0.6110 as a drop below this double bottom could trigger a new round of sell-off. A close above 0.6220 is another encouraging sign, prompting sellers to cover their shorts and turning 0.6200 in the area into a fresh support. The RSI’s overbought condition may cause a limited pullback then the daily resistance at 0.6310 is the next target.

UK 100 breaks support

The FTSE 100 tumbled as energy stocks struggled amid subdued risk appetite. The bounce off March’s lows showed solid interest in keeping the bullish bias intact in the medium-term but could use some breathing room after reaching the supply zone 7930-7950. A decisive break below 7790 on the 20-day SMA suggests that a correction could be on its way and prompts more short-term buyers to bail out. 7730 is the next support as the RSI goes oversold. 7870 is the first hurdle to lift before the uptrend could carry on.

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