The yen slumped after a Reuters poll showed a slowdown in core CPI in August. On the daily chart, the pair is consolidating after clearing the double top at 158.00. The directional bias would remain up as long as the quote is above 155.60. An initial pop above 158.50 has prompted sellers to cover some of their positions and base-building at 156.70 suggests that the bulls are in an accumulation game. A close back above 158.20 could bring the single currency to the recent peak of 159.70, a step closer to a bullish continuation.
Silver rallies as the Fed is widely expected to leave interest rates untouched this week. The price is hovering above the daily double bottom of 22.30 which is a critical floor to keep the precious metal afloat in the medium-term. A bounce above 23.20 would ease the pressure by flushing out short-term selling interests. The next step is important in shaping a potential recovery. 22.85 is the first support to keep the momentum going as the RSI ventures into the overbought area and a successful rebound would lift offers past 23.50.
The Dax cheered the ECB’s call to end its current rate hiking cycle. The latest bounce off the demand zone 15580 indicates a solid footing despite multiple bearish attempts. A break above 15850 has forced a number of bears to close out, stirring up volatility as they scramble for the exit. The psychological level of 16000 could be the last stop before a full-blown recovery would take shape with 16200 as an intermediate target. The former resistance of 15800 has turned into support as the RSI went overbought.
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