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.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD holds near 1.0900 ahead of key ECB meeting
EUR/USD recovers modestly from multi-month lows and fluctuates at around 1.0900 Wednesday. The cautious market mood ahead of Thursday's ECB policy announcements, however, makes it difficult for the pair to continue to stretch higher.
GBP/USD recovers above 1.3000 after earlier selloff
GBP/USD recovers from the multi-month low it set near 1.2980 and trades above 1.3000. The data from the UK showed that the annual CPI inflation declined to 1.7% in September from 2.2% in August, weighing heavily on the Pound Sterling in the early European session.
Gold closes in on new record high above $2,980
Gold price scales higher for the second straight day on Wednesday – also marking the fourth day of a positive move in the previous five – and climbs toward the all-time-high it set at $2,685 in late September.
Why is the ECB set to cut interest rates again and what does that mean
The ECB is widely expected to cut interest rates on Thursday for the third time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
British inflation dips to 1.7% in September
And speaking of inflation and Europe, inflation in Britain not only fell below 2% in September but came in significantly lower than expected (1.7%y-o-y vs 1.9% expected).
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.