Intraday Analysis - Friday, Oct. 2

UK 100 tests critical floor

The FTSE (UK 100) took a dramatic tumble as price action fell away from its recent high.

• The index’s close below 10500 has invalidated the recent spike, putting buyers under pressure.

• As the index steadies and looks for support, 10400 is the first support to prevent a continuation towards 10000.

• On the upside, 10560 is the first level to clear to give the buy side a fighting chance to regain some stability.

USDCHF grinds resistance

The dollar consolidates as traders wait for signals on whether the pair will begin reversing.

• After rising over 400 pips in September, the pair could have hit some firm resistance.

• The upward grind halted at 0.8370, where bears could look to swoop in.

• 0.8300 is the closest support to keep the upward slope intact, and its breach could lead to a test at 0.8240.

• Buyers will need to lift bids around 0.8400 to extend the rally.

NZDUSD attempts to bounce

The Kiwi attempted to stop the freefall after dropping over 200 pips in the past couple of weeks.

• The pair is trying to stabilize above 0.5600.

• A bullish divergence on the RSI suggests slowing sell-off momentum, opening the door to a potential bounce.

• The first zone between 0.5660 and the psychological level of 0.5700 is the first obstacle to ease the selling pressure.

• On the downside, 0.5600 is a fresh support in case of a prolonged consolidation.