Intraday Market Analysis – US Stocks Continue to Soar.
US 30 shoots to new high
The Dow Jones 30 rose to a record high after the US Senate passed the $1 trillion infrastructure bill. The initial surge above 35100 was a sign of strong buying interest.
The index has then found support at 35030 near the top of the previous consolidation range.
A series of higher highs indicates that the bullish bias is still intact.
The RSI has popped up into the overbought area once again, and a temporary pullback may allow the bulls to raise their stakes. 35500 would be the next stop as the rally picks up steam.
EURUSD lacks support
Downbeat economic sentiment in the eurozone further depresses the euro against a roaring US dollar.
The break below 1.1760 from the daily chart has put buyers on the defensive. Strong inertia in favor of the greenback fuels the bearish ride as momentum traders pile in.
The former support has turned into resistance (1.1770). The euro is testing the next support at 1.1710, where a bearish breakout may extend the sell-off to last November’s low at 1.1600.
Then a reversal could be in the making in the medium term.
XAGUSD sinks to major support
Bullions struggle as US bond yields rise amid hawkish Fed comments about a taper in the fourth quarter.
Silver’s latest rally may turn out to be a dead cat bounce as sentiment remains extremely cautious. Price action is grinding down along the moving averages.
24.35 is now the new resistance. Sellers would be eager to dump at a better price before the RSI goes oversold again.
The psychological level of 22.00 from last November would be a critical test of the rally from March 2020.
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