USDCHF drifts lower
The US dollar pulled back after the recent Fed decision, which saw the pair jump over 100 pips. The pair now continues downward in search of bids as short-term sentiment remains pessimistic. As the relative strength index (RSI) moves away from the overbought area, a substantial bearish divergence has emerged. Support at 0.8920 from the recent bounce is the next level to see whether buyers will stay in the market. 0.8980 is the immediate hurdle to clear to reach the peak again towards 0.9050.
XAGUSD tests major support
Silver, along with the metal market, fell sharply after the hawkish tone from the Fed. The price is testing September’s price zone below 29.00. As both the daily and the hourly relative strength index (RSI) went oversold, the metal could meet intense pressure from bulls looking to fade the bounce, as well as the bears taking some chips off the table. A bullish breakout would force the former to cover and trigger a rally towards 30.00. 28.40 is fresh support in case of a further decline in price action.
GER 40 grinds lower
The Dax was also a casualty of the recent market sell-off, as prices slipped away from the recent peak. The index is grinding its way lower as the latest vertical fall has attracted a number of sellers. The daily RSI’s oversold situation could suggest a slowdown in the current momentum, and a snapback cannot be excluded in such a crowded and unidirectional trade. 20200 is the first target for buyers as the price hovers around the 20000 level.
