EURUSD retraces to major support
The euro pulled back after the block’s CPI dropped to 0.8% in April. Though the pair maintains its bullish trajectory from the daily chart’s perspective, a healthy pullback seems necessary for buyers to catch up after it rose back above the last leg of sell-off (1.1990).
With an RSI deep in the oversold area, the psychological level of 1.2000 near the 20-day moving average would be a critical level to test buyers’ confidence.
The rally would only resume if the euro climbs back to the previous high at 1.2150,
GBPJPY exhibits bearish MA cross
The Japanese yen gained traction after the unemployment rate fell to 2.6% in March. The pound falls back in search of the next support as the yen recoups losses across the board.
The RSI’s double top in the overbought area was an indication of exhaustion past the key resistance at 152.00. A breakout below 151.00 would confirm the bearish MA cross.
The next level to find potential buying interest would be around 150.10. On the upside, the long side will need to lift 152.10 to resume the U-turn.
SPX 500 tests resistance-turned-support
The S&P 500 consolidates recent gains as rebounding corporate profits raise investors’ risk appetite. Buyers are striving to hold above 4180 after they cleared the former supply zone.
A rally above 4219 would open the path to a new high above 4300. However, a slide below could dent the short-term fever and trigger profit-taking.
4140, the lower band of the previous consolidation range would be a major support to monitor.
Its breach could lead to a deeper correction towards the rising trendline (4050) on the daily chart.