USDCHF bounces back

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The US dollar popped after Fed Chair Jerome Powell hinted at a return to larger rate increases. On the daily chart, after pulling back from its three-month high at 0.9440, the greenback found support over the 20-day SMA (0.9290), which coincides with the base of a previous bullish breakout. A bullish RSI divergence in this demand zone carries weight and the surge confirms the recovery. A break above 0.9400 puts the peak of 0.9440 under pressure and may resume the rally from early February. 0.9350 is now a fresh support.
 

AUDUSD breaks the critical floor

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The Australian dollar slid after the RBA signaled it was near the conclusion of its tightening cycle. The pair pierced December’s lows around 0.6650 and opened the door for a liquidation towards 0.6500. In the medium-term, the correction could threaten the rebound from last October and turn it into a reversal. As the RSI dipped into oversold territory, profit-taking may trigger a limited bounce. 0.6650 has become a resistance and 0.6770 at the top of the recent consolidation may see more bears selling into strength.
 

UK 100 turns south

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Equities tumbled after Powell’s hawkish comments turned markets risk-off. On the daily chart, the FTSE 100 has remained upbeat while grinding along the 30-day SMA, a sign that the bulls are still eager to keep the ride going. Buying pressure has been building up after the price secured a foothold over 7850, but the latest fall below 7895 dented the short-term mood. 7850 is a key level to keep the week-long bounce intact as its breach could trigger a broader sell-off towards the daily support of 7710. 7960 is the closest resistance.

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