XAGUSD holding onto gains
Silver bounced back as the metal market saw a revival, as prices bounced off the recent bottom at 30.00. The latest move came to a halt at the daily resistance of 31.50, as the metal now looks to consolidate whilst catching its breath. A break above this said resistance would see some buying interests reemerging in the metal market, with 32.80 as the second layer of defence to prevent a deeper correction. This would put the metal back on track and extend the rally to the October peak above 34.50.
USDCAD fails to break resistance
The US dollar failed to break the 1.4100 resistance as price action fell lower. The price saw a 100 pip sell-off and forced some bulls to throw in the towel, paving the way for a bearish continuation below 1.4000. In the near term, the RSI has ventured into the oversold area and could cause a bounce to the upside should intraday sellers take some chips off the table. 1.4050 is the first test to gauge the strength of follow-through interests.
GER 40 tests descending channel
The Dax attempts to move out of the recent descending channel as prices moved away from the 18800 region. On the chart, the index hovers above 19000, which is a critical floor to keep the price action afloat, as a bearish breakout would trigger a broader liquidation. The RSI’s move into the neutral area could attract those looking to buy the dip in the hope of a bounce. The level of 19500 at the top of the channel is the first obstacle to clear to turn the short-term mood around.