Nasdaq 100 shows negative divergence while EUR/USD recovers and WTI tests key resistance
Nasdaq 100 shows triple negative divergence which may point to a consolidation while EUR/USD recovers and WTI tests key resistance which is expected to soon give way.
Nasdaq 100 trades below its June high
The Nasdaq 100 continues to trade below its 4 1/2 month high at 21,891 but remains short-term bullish while Thursday's low at 21,473 underpins on a daily chart closing basis.
Since negative divergence can still be seen on the daily Relative Strength Index (RSI) renewed consolidation may soon be seen.
Support can be found around the 21,611 late May high ahead of last week's 21,473 low and the April-to-June uptrend line at 21,431.
A rise above last week's 21,891 high would likely engage the late January high at 21,945 and the psychological 22,000 region.
EUR/USD tries to regain upside momentum
EUR/USD's rally off its $1.1211 late May low and subsequent rise above its $1.1418 May peak to last week's high at $1.1495 has been followed by a minor sell-off to Friday's $1.1372 low. While it underpins, a retest of the $1.1500 region and perhaps the April peak at $1.1573 remains at hand.
Potential slips below Friday's $1.1372 low may find support between the 21 May high at $1.1363 and the 4 June low at $1.1357. Were this area to give way, the February-to-June uptrend line at $1.1306 may be revisited.
WTI tries to overcome resistance zone
On Monday morning the price of WTI crude oil nearly succeeded to break through its late April-to-May $63.86-to-$64.83 per barrel highs which so far act as resistance, though.
While the 55-day simple moving average (SMA) at $62.80 and the 4 June low at $62.21 underpin, though, the odds favour a break through the key $63.86-to-$64.83 resistance zone with the 200-day SMA at $68.56 representing an upside target.
On the way there minor resistance may be encountered around the 5 March $65.25 low, the 11 March $65.32 low and the 19 March $66.12 low as well as the 31 March low at $68.87.
Immediate support can be seen around the $63.86 mid-May high and at $63.04 late May peak.
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