USD holds steady
|USD/CHF bounces higher
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.
XAG/USD tests major support
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.
DAX 40 seeks support
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.