Forex Trading Library

Intraday Analysis – USD holds steady

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USDCHF bounces higher

Chart of USDCHF

The US dollar steadies as Fed officials commented that further rate increases are likely. The pair is still in a slow recovery, probing for resistance as sellers take some chips off the table. The bounce has hit resistance at 0.8800 on the 30-day SMA, suggesting that sentiment remains cautious at best. 0.8670 is the immediate support and 0.8560 a critical floor to keep the current rebound valid or risk a bearish continuation. On the upside, the former daily support of 0.8900 would be next in case of further bullish extension.

XAGUSD tests major support

Chart of XAGUSD

Precious metals weaken as a tight US labour market pushes bond yields higher. Silver has fallen back to the base of July’s breakout rally and the round number of 23.00 and this could be the ultimate test of buyers’ resolve. A bearish breakout would expose June’s lows near 22.10, invalidating the summer rally. An oversold RSI has brought in some bids in this major demand zone. 23.80 is the first hurdle to clear should the bulls manage to make their way back and only a close above 24.40 would help attract more buying interests.

GER 40 seeks support

Chart of DE40

The Dax 40 consolidates ahead of inflation figures from Germany and the US this week. A drop below the psychological level of 16000 which coincides with a swing low and the 30-day SMA has put buyers in a bind. Volatility is a sign that short-term positions were forced to exit. The area between July’s low of 15450 and 15700 is key in keeping the upward bias intact from the daily chart’s perspective, or its breach could trigger a prolonged correction. 16050 is a fresh resistance and the bulls may only regain control once above 16200.

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