Intraday Market Analysis – Dax Sees Bullish Acceleration.
GER 30 rises along trendline
The Dax 30 soared to a new all-time high backed by a strong earnings season.
The rally is in full swing after a break above the previous peak at 15810. The index is climbing along a rising trendline since late July. The price has gone vertical and suggests an acceleration in the bullish momentum.
A repeatedly overbought RSI indicates an overextension. A limited pullback would help the bulls catch their breath.
15850 on the trendline is a key support should this happen. Then a rebound would lift the index to 16100.
USDJPY seeks support
The Japanese yen strengthens on upbeat GDP growth in Q2.
The pair is looking for support after a close above the daily resistance at 110.60. This is an indication that the medium-term rally may resume.
A pullback is necessary however after the RSI showed exhaustion. Analysts can expect buying interest at the psychological level of 109.00. An oversold RSI would make this a congestion area and prompt the bulls to buy the dip.
109.70 is a fresh resistance ahead. A bullish breakout would lead to 110.50.
XAGUSD bounces above resistance
Silver claws back losses as US Treasury yields remain flat on mixed US data.
Price action has so far found support above the psychological level of 23.00.
The RSI has risen back to the neutral area as traders bought the dip in an attempt to reverse course. However, the bearish mood would prevail as long as the metal stays under 24.35, the last leg of sell-off.
A rebound may meet strong selling interest from trend followers. A fall below the said support would send the price to November’s low at 22.00.
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