Intraday Analysis – EURUSD Struggles Against USD Dominance
Daily analysis 07.02.2024 : EURUSD, XAGUSD, GER 40
![EURUSD-analysis-alongside-XAGUSD-and-GER-40-market-trends](https://assets.iorbex.com/blog/wp-content/uploads/2024/02/07090256/EURUSD-analysis-alongside-XAGUSD-and-GER-40-market-trends.png)
EURUSD drops another 100 pips
![Chart depicting EURUSD analysis: Decline of 100 pips amid USD dominance](https://assets.iorbex.com/blog/wp-content/uploads/2024/02/07085939/EURUSD-CHART-7-2-2024.png)
The US dollar continues to soar after January’s jobs report far exceeded estimates. The pair broke through the previous psychological support of 1.08 after another 100 pip decline. A drop below the bearish engulfing candle at 1.0780 was already a sign of weakness, with the euro struggling to hold on. A sharp fall towards 1.0730 indicates that the bulls have bailed out. 1.07 on the 20-day SMA is the next level to see whether the price would stabilise, and 1.0750 is a fresh resistance in case of a bounce. EURUSD analysis suggests a challenging outlook for the currency pair amidst the US dollar’s relentless surge.
XAGUSD seeks floor
![Chart illustrating XAGUSD analysis: Struggle as silver prices plunge post-NFP](https://assets.iorbex.com/blog/wp-content/uploads/2024/02/07090011/XAGUSD-CHART-7-2-2024.png)
Silver plunged as Treasury yields and the greenback leapt forward post-NFP. Despite another tentative breakout, The metal struggled to sustain its momentum in the confined zone between 22.00 and 23.35. The lengthy, choppy action at the top showed indecision, and a fall below 22.80 prompted bulls to exit. The round number 22.00 is next to see if buying interest would show. Should the choppy trend continue, a bounce could lead price action back towards 23.00 by the end of this week.
GER 40 consolidates gains
![Chart showing GER 40 analysis: Stability as investors await ECB signals](https://assets.iorbex.com/blog/wp-content/uploads/2024/02/07090044/GER40-CHART-7-2-2024.png)
The Dax 40 steadies as investors await further signals that the ECB is in the later stage of its hiking cycle. Sentiment saw a boost after a bounce off the 20-day SMA at 16900. The rally has slowed after an overbought RSI showed signs of a bearish divergence. 16800 is the first support and a bounce would carry the bullishness back towards 17000. A bearish breakout, however, would force leverage positions out and send the price back to 16650 and then 16355.
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