USD/CHF faces strong resistance
The US dollar struggled to bounce back after the US labor market showed inconsistencies. Despite a week-long consolidation above 0.9075, the bearish momentum was a reminder that sellers are still in charge of the price action.
The RSI’s double-dip into the oversold territory may prompt short-term traders to take some chips off the table triggering a limited rebound.
0.9100 is a tough resistance where trend-followers could be on standby. A failure to break out would lead to renewed pressure towards 0.8940.
AUD/USD rallies towards February’s high
The Australian dollar has found solid support from rallies in commodity prices. The pair saw strong momentum after it cleared the triple top at 0.7810.
From the daily chart’s perspective, a bullish close above the supply zone around 0.7850 could confirm the bullish MA and resume the uptrend from March 2020.
The previous high at 0.8010 would be the next target. 0.7835 near the 30-hour moving average struggles as a support, which means that 0.7760 is the second line of defense in case of a deeper correction.
XAG/USD hovers under major resistance
Bullions prices grind higher as the US dollar remains under pressure. The recovery accelerated after silver broke above the daily resistance at 26.60.
28.30 is a major hurdle ahead and a bullish breakout could extend the rally towards 30. Though an overbought RSI would suggest a potential retreat to attract more buying interest.
The resistance-turned-support 27.10 is the first level to monitor. Further down, the demand zone between 26.15 and 26.56 is key in keeping the upward bias intact.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.