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)
![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
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
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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