Intraday Analysis - Monday, August 10

XAGUSD(Silver) taking a breather

XAGUSD(Silver) remains cautious even though a weaker US dollar boosted the demand for precious metals.

• A surge above 63.00 was a sign of strong buying pressure, pushing the price towards 65.00.

• But since then, a slight pullback has halted the progression as sellers stepped in.

• Bulls need to catch their breath after the RSI develops a bearish divergence.

• A close above 65.00 would flush out the remaining selling interests.

• 61.40 is a firm support, with 60.00 a psychological floor.

EURUSD keeps the high ground

The US dollar remains under pressure as traders anticipate another push on the euro.

• The pair now looks to consolidate as prices have almost jumped 100 pips from last week’s NFP numbers.

• As sentiment remains bullish, trend followers could look to jump in at the next pullback.

• 1.1520 is the first support, and 1.1440 is a key level to keep the momentum intact.

• As the RSI hovers around the neutral zone, 1.1600 is the next target higher.

GER 40 hits double top

The Dax continues to grind higher after the double top halted the progression.

• The price steadily clawed back losses and is testing the daily resistance of 26450.

• Another bullish breakout would put the bulls back in the driver’s seat.

• 26600 would pave the way for a bullish continuation in the medium-term.

• Further down, 26000 is a strong support should prices swing lower.