US Dollar In Control, Euro Settles Below 1.2800
- Euro broke an important support level yesterday to trade below the 1.2800 area against the US dollar.
- Swiss franc and the Japanese yen also declined sharply against the US dollar and looks set for more losses in the near term.
- GOLD is closing in towards the recent low of $1208, and it would be interesting to see whether it could break it or not.
- NZDUSD pair looks like eyeing a test of the 0.80 handle moving ahead.
The Australian dollar was seen struggling during the past couple of weeks, but it somehow managed to survive the US dollar assault yesterday and declined less compared with other currencies. There is a critical contracting triangle formed on the hourly chart of the AUDUSD pair, which might act as a catalyst in the near term. Currently, the pair is trading around the triangle support area, and it looks like that it might break and close below the same. If it manages to close below the 0.8850 level, then a move towards the last low of 0.8830 would be on the cards. Recently, the pair failed to break higher and struggled to clear the 61.8% fib retracement level of the last drop from the 0.8925 high to 0.8830 low.
Intraday Support Level – 0.8830
Intraday Resistance Level – 0.8880
- Overall, the pair is in the downtrend and if it breaks the highlighted triangle, then it could ignite more losses moving ahead.
- Staying on the sidelines look like a wise option as the AUDUSD pair has overextended the downside.
If the pair manages to survive a break, then too it needs to clear the triangle resistance area to trade higher in the coming sessions. A failure to do so might encourage the Aussie dollar sellers to take it lower again. The hourly RSI is well below the 50 mark, which is a negative sign for bulls.
All the precious metals struggled to hold the ground recently, as the US dollar was simply unstoppable. SILVER was one of the victims, as it is heading back towards the recent low of $17.30. The most important point to note from the hourly chart of SILVER is that the RSI has continuously struggled to break and close above the 50 level. Moreover, there is a bearish trend line, which acted as a hurdle time and again. Recently, after trading as low as $17.30 SILVER tried to recover ground, but failed right around the 50% fib retracement level of the last drop from the $18.57 high to $17.30.
Intraday Support Level – $17.30
Intraday Resistance Level – $17.65
- A break above the highlighted bearish trend line could help the white metal to recover some ground.
- A break below the last low might take SILVER towards the $17.00 handle.
As long as SILVER is trading below the 100 hourly moving average more losses cannot be denied. However, selling should be avoided at this point of time, as it might jump abruptly at any moment.
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New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.
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