Intraday Market Analysis – USD Seeks Support Post-NFP.
EURUSD struggles to bounce
The US dollar drops after an uptick in last month’s unemployment rate. Sentiment towards the euro grew a tad more bearish after it fell below 1.1850, the support of the recent consolidation range.
However, an RSI divergence suggests a loss in the downward momentum, and its double-dip into the oversold territory may make sellers reluctant to double down. Buyers will need to lift offers around 1.1880 before they could push for a reversal.
Below 1.1800, the pair would be heading towards the daily support at 1.1710 by default.
XAGUSD rallies above resistance
Bullions bounce back as weaker-than-expected jobs data take a toll on the US dollar.
On the daily chart, silver has found support at the 61.8% (25.70) Fibonacci retracement level from the late March rally. 26.50 has so far capped the bulls’ attempts.
The latest breakout is a confirmation of the previously mentioned bullish RSI divergence. The bears may rush to cover their bets before it becomes too expensive to do so.
27.20 would be the next target when the rebound gains traction.
GER 30 looks to break out of triangle
The DAX 30 consolidates near its recent peak as the euro zone’s economy picks up steam.
The index is in an ascending triangle as buyers are willing to pay up. This often occurs as a continuation pattern as the price will typically breakout in the same direction as the underlying trend.
A close above 15750 may prompt the last sellers to cover. The RSI stays neutral, laying the groundwork for a breakout. A runaway rally could lift offers towards the milestone at 16000.
A drop below 15500, however, may trigger a correction to 15280.
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