Forex Trading Library

Intraday Analysis – DAX gives up gains

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USDCHF struggles for support

USDCHF-CHART 16-10-23

The Swiss franc rallied after a slower decline in producer and import prices suggested inflation pressure. The pair has been trying to stabilise above 0.8990 at the base of a bullish breakout candle in late September. A jump above the first resistance level of 0.9070 has led some sellers to trim their bets, but the previous support of 0.9120 remains a major hurdle to lift before a rebound could gain greater momentum. A fall below 0.8990 would force the latest buyers to bail out and trigger a sell-off to a 4-week low at 0.8900.

XAGUSD tests resistance

XAGUSD CHART 16-10-23

The intensifying conflict in Gaza fuels inflows into precious metals. Silver has jumped back from its 7-month low and into the former daily support formed by a triple bottom around 22.60. Renewed selling could be expected in this key supply area as the bears may look to fade the rebound. 22.00 is the immediate support and a U-turn below it would signal that the path of least resistance is still down, exposing the recent low of 20.70. A meaningful recovery would only materialise if the bulls manage to push past the spike at 23.50.

GER 40 lacks follow-through buying

GER 40 CHART 16-10-23

The Dax 40 stalled as fighting in the Middle East rattles risk aversion across global markets. While a close above the previous swing high and round number of 15500 has given buyers some breathing room, they have struggled to follow through and show their commitment. A pullback below 15360 has led intraday buyers to close their positions, leaving 15040 as a critical floor to keep the momentum going as its breach could send the index to its 7-month low of 14500. 15400 is the first resistance to clear when bids return.

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