Intraday Analysis - Wednesday, Sept. 2

USOIL shifts higher

Oil (USOIL) maintains its bullish stance as tensions in the Middle East escalate.

• A move above the major supply zone of 88.00 is a strong recovery signal with the ongoing shift in market mood.

• 90.00 is the next target as buyers attract more buyers.

• Exhaustion on the rally would see a retracement back towards the mid-$85 area, with 84.00 being a critical floor.

GBPUSD finds support

The pound attempts to bounce back after its choppy downturn over the past few weeks, finally finding some stability.

• 1.3520 is a critical support to prevent a dive below the 1.3500 level.

• Medium-term sentiment remains upbeat, and bulls may view any pullback as an opportunity.

• As a bullish divergence emerges on the RSI, 1.3600 is the next target.

• A break at the said support could cause a continuation lower, with 1.3450 being the next zone.

SPX 500 loses momentum

The S&P 500 falls away from another record as worries over energy prices drop global indices.

• The rally accelerated after opening the session with a gap as the 7700 level was broken.

• The index is on its way to 7500 if price action remains under the current support at 7640.

• As the RSI moves towards the oversold zone, traders could look to buy the dips if a bullish divergence emerges.