Forex Trading Library

Intraday Analysis – USD Tries To Bounce Higher, The Silver Struggles

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XAGUSD tests major resistance
XAGUSD Chart: The Silver price fluctuations depicted with major resistance and support zones indicated.

The Silver struggles as the US dollar still carries the momentum. The price is drifting away from the previous firm resistance at 23.36, with a break past 23.00 showing that bears are still in the market. Buying interest or a lack of interest in this vital zone would dictate the metal’s outlook in the coming weeks. Intraday-wise, the RSI’s overbought condition has triggered a reversal on the metal, which is following the trend. 22.80 is the closest support, with a move back down to 22.00 likely if the former level is broken.

GBPUSD remains undecided
GBPUSD Chart: Price movements of GBPUSD with key resistance and support levels highlighted.

The pound clawed back some losses before falling away from the 1.2600 handle. The recent news of a technical recession sees cable remain upbeat, even after initially sliding over 100 pips. As the pair tests the 1.2560 level, the RSI’s double dip into the oversold area attracted some bargain hunters. On the upside, 1.2625 is the immediate resistance to move past the recent swing high. Then, a return to the previous false spike at 1.2680 can then be tested.

GER 40 finds support
GER 40 Chart: Dax index performance shown, highlighting support levels and potential bearish momentum.

The Dax whipsaws on concerns that Europe’s biggest economy could slip into a recession. The price action previously failed to clear the high of 17200, forming a double top as it pulls towards 17000. A break through this level opens up another sell off at 16800 on the 20-day SMA. This would suggest a strong enough follow-through to keep the short-term bearish momentum intact. However, a close back above 17100 would nip selling in the bud and resume the uptrend with a fresh high above 17500.

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