Intraday Analysis - Monday, Oct. 12

XAGUSD spikes higher

The metal market continues to rally after silver (XAGUSD) pushed to another high.

• The precious metal has recouped losses from the recent pullback.

• 63.00 is a major ceiling ahead, and its breach would force the remaining sellers out and signal a bullish continuation.

• However, a bearish RSI divergence could hold back the buy side, at least momentarily, with fresh selling and profit-taking driving prices lower.

• 60.00 is the first support should this happen, with 58.50 a second target.

USDCHF pushes lower

The US dollar corrected as the Fed gave more signals regarding its next rate cut.

• The franc made gains as prices tested the 0.8300 level.

• However, a bounce above the next target at 0.8370 will shake off weak hands, suggesting that bulls have the last word.

• On the downside, a close below 0.8300 would signal strong willingness to dent the dollar’s recovery.

• 0.8240 will be the next support lower.

EURGBP hoping for support

The euro jumped back into action as prices look for support at the mid-0.8400 area.

• The pair is attempting to push back above 0.8500, suggesting bulls have not capitulated yet.

• A break above the said target will be an encouraging sign, throwing off more selling interest and possibly paving the way for an extension towards 0.8560.

• However, any signs of another dip past 0.8450 could see a fresh bid to break recent lows and send the pair towards 0.8400.