Following the rejection at the 200 DMA, selling pressure on the AUD/USD intensified. The currency pair is now approaching a key support level at 0.70. A daily close below that level could potentially trigger further momentum selling, and the next level to watch would then be 0.68. The RSI on the daily chart is still above 30, suggesting AUD/USD is not yet oversold.
The GER30 broke below the rising trendline from the Jan 8 low, as well as the key psychological support level at 11.000 points. The short-term outlook has turned bearish, and DAX bulls would need a clear break above 11.200 points to gain the upper hand again. To the downside, the key levels to watch are 10.850 and 10.550 points.
US500 is performing fairly well, given the losses in other equity markets. As long as the index can hold itself above 2676 support, the outlook remains slightly positive. To the topside, traders should keep an eye on 2720 and 2740 resistance.
Gold has been struggling since the failure at $1325 resistance. Bulls still have the upper hand, as $1300 support and upside momentum remain intact. However, XAU/USD might struggle in the near-term as Dollar strength returns. Furthermore, the RSI divergence on the Daily chart should be a concern for Gold bulls as well, as it suggests there could be further downside before the rally continues.
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Ongoing rate curve repricing and risk asset reaction perfectly illustrate how worryingly reliant investors have become on easy money policies