EURUSD drops lower

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The euro took a step back against the dollar as the Fed raised questions about its next move. After testing 1.1600, price action is now turning its attention to October’s low at 1.1550. A subsequent break below this region would indicate that bears are in full force after the pair continues to move lower. The recent bullish divergence in the RSI is the key indicator of whether buying will pick up again, and 1.1660 would be the first hurdle to overcome.
 

XAUUSD hitting psychological barrier

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Gold received a slight boost in fortunes as prices tested the psychological resistance at 4000. The recent low at 3920, at the base of the latest bounce, is an important level to sustain the bullish thrust, as its break would have forced buyers to abandon ship. The 4040 level is a vital target to maintain the rally, and its breach could trigger a move towards the previous consolidation at 4160.
 

GER 40 looks for fresh high

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The Dax (GER40) dropped away from its bullish advance with a move towards 24000. A bounce off 24400 on the daily chart has put the bulls on the defensive, as 24100 has become a fresh resistance level. A further pullback could see a few more points shed off the index as the RSI remains in the neutral area. 24400 is the next target higher to see if there’s any chance of a turnaround, or if prices will become vulnerable to a deeper correction below 24000 in the medium-term.

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