XAGUSD consolidates gains
Silver remains cautious even though a weaker US dollar boosted the demand for precious metals. A surge above June’s high of 31.54 indicates intense buying pressure, carrying the price to the psychological level of 32.00. But since then, a rapid sell-off has halted the progression as sellers have stepped in. Bulls need to catch their breath after the RSI developed a bearish divergence. A close back above 31.00 would flush out the remaining selling interests and open the door to 32.50.
EURUSD keeps the high ground
The US dollar stays under pressure as traders anticipate more signals that the Fed will confirm rate cuts. The euro continues to outperform the dollar after it broke above June’s peak of 1.0900. The RSI’s repeatedly overbought condition could cause some profit-taking as a bearish divergence emerges, temporarily driving the pair lower. As sentiment remains bullish, trend followers could look to jump in at the next pullback. 1.0840 is the first support, and 1.0780 on the 20-day SMA is a pivotal level to keep the momentum intact.
GER 40 hits resistance
The Dax 40 ended a three-day winning streak as prices fell past the 18500 level. The price steadily clawed back the losses from June and tested the daily resistance of 18800. Another bullish breakout would put the bulls back in the driver’s seat and send the index to its recent high of around 19000, paving the way for a bullish continuation in the medium term. The round number of 18000 is the closest level to see if there are enough buyers to cause a rebound. Further down, 17800 would be a second level of support.
