Intraday Market Analysis – WTI Still Under Pressure

AUDUSD seeks support

The Australian dollar falls as China’s industrial and retail data disappoint. The pair turned south in the supply zone (0.7130) at the start of a sell-off back in June. A combination of profit-taking and new selling may keep the Aussie under pressure in the short-term. A bearish RSI divergence indicates overextension and a break below 0.7060 could be seen as a confirmation, triggering a liquidation of leveraged positions. 0.6960 at the base of the recent rebound is a key support while 0.7060 has turned into a fresh resistance.

USOIL breaks support

WTI slides as weak Chinese economic data raise concerns over demand. The bulls’ struggle to keep higher lows indicates that sentiment remains downbeat. A short-lived rebound to 95.00 which sits on the 20-day moving average is another sign that the bears have firm control of the direction. A fall below 87.50 would invalidate the bounce and attract more selling. 82.00 near a seven-month lows would be the next target. As the RSI recovers from oversold territory, 92.00 is the resistance and sellers may continue to fade rebounds.

UK 100 inches up

Equities rally as investors find some relief in China cutting interest rates. The FTSE is looking to hold onto its gains as it grinds its way towards a new high. 7560 at the origin of June’s liquidation is a major hurdle and strong selling interest could be expected from those who believe in a bear market in the medium-term. The RSI’s repeated overbought condition may make buyers wary of chasing after the rally. 7460 is the immediate support and 7370 over the 30-day moving average an important level to prevent a correction.

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