Intraday Market Analysis – Triple-Tested Support
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US 30 bounces off key support
The Dow Jones recoups losses as investors expect some leeway for President Biden’s fiscal plans.
The index has found support at 33700. There have been three consecutive tests at this level which is a sign that buyers remain in control of the price action. A rally back above 34150, the base of the latest sell-off could convince traders of the underlying strength.
A new high at 34400 would be the next target should momentum picks up. As the RSI ventures again into the overbought area, 33700 is a critical support in case of a pullback.
GBPUSD retreats in search of support
The pound is looking for support after a better-than-expected PMI suggests economic resilience.
The latest sharp sell-off came from the psychological level of 1.4000, also a major resistance on the daily chart. Its breach could revive the thirteen-month-long uptrend.
As for now, an oversold RSI has prompted some short-covering. 1.3810 is the immediate support to test the strength of rebound.
Further down, 1.3720 will need to see solid buying interest to save the chance of a reversal.
EURAUD tests key supply area
The euro climbed back after the euro zone’s service PMI recovered to 50.3. The previous sell-off has met robust support at 1.5420. The subsequent rally above 1.5530 suggests that buyers are still committed to pushing higher.
The price may test the supply area at 1.5670 for the third time. Profit-taking from short-term traders would be expected.
A bullish breakout may trigger a broader recovery as the short side rush to cover their bets. On the downside, 1.5500 would be a key support to monitor.
