Intraday Market Analysis – Downward Pressure
GBPAUD tumbles from supply zone
The pound slipped after the EU said there is ‘no pressure’ to rush a financial services deal with the UK.
The pair has come under pressure at the supply area near 1.8080. After surging into an overbought situation, the RSI’s divergence suggests a loss in the recovery momentum as the price meets the key resistance.
The latest breakout below 1.7930 followed by a bearish MA cross may exacerbate the selling pressure.
1.7830 would be the next target if short-term buyers start to abandon the ship.
EURJPY drops below consolidation range
The euro tanked after the ECB kept its policy unchanged without any hint of tapering. The underlying trend still points to the upside as long as the price action stays above the rising trendline on the daily chart.
In a shorter time frame, however, the dip below 129.60 reveals a lack of bids. 129.15 along the trendline would be a critical support to test buyers’ commitment.
A bearish breakout could threaten the generally upward bias.
On the upside, the latest whipsaw has established 130.45 as a resistance level.
XAGUSD meets daily resistance
Silver rallies as the US dollar struggles with easing Treasury yields.
Profit-takings have pushed the price back from the resistance at 26.60, a major hurdle on the daily timeframe. The precious metal may climb back to 28 should buyers lift offers in that area.
In the meantime, the RSI has retreated from the overbought zone in search of buying interest. The support at 25.60 is a congestion area as it coincides with the rising trendline.
A rebound would be the confirmation that buyers have firm control of the direction.