Intraday Analysis - Tuesday, August 18

GER 40 stuck in a bull channel

The Dax (GER 40)continues its choppy upswing after rising once again from the lower 26000 area.

• Prices continue to capitalise on its break above the psychological level of 26000.

• As the RSI drops back into the neutral area, 26100  is the first level to expect follow-through bids, as 25800 remains a critical floor.

• Another test at the recent peak of 26600 would require the index to maintain its composure above 27000.

USDCHF bounces lower

The US dollar triggered a sell-off after losing another 50 pips in value.

• Following a pop below the next psychological level of 0.8100, a brief pullback has been contained.

• A further move lower would signal that bears have regained control of price action and opened the door to a test at 0.8060.

• 0.8000 is the next target to confirm a deep continuation.

• A move higher would need a break above 0.8150 to turn things around.

GBPUSD hits another peak

Cable finds buyers as its latest bull rally moves over 100 pips.

• The latest move has met bids past the 1.3500 region as traders look towards the 1.3600 level.

• A bearish RSI divergence could indicate a slowdown as the pair looks to catch its breath.

• 1.3480 is the first hurdle lower, and its breach would make the pair retest the recent low of 1.3420.