USDJPY breaks key support

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The US dollar crumbled after data showed a deceleration in last month’s inflation. Its recent vertical ascent might just need more breathing room. After hovering above 145.10, a sharp fall suggests a mass liquidation from a crowded long trade. As the RSI sank deeply into oversold territory, the price is testing the trough at 140.50 in late September. A valid breakout would put the greenback on a correction course in the medium term with 138.00 as the target. 144.00 is the first resistance should the price action stabilizes.
 

EURAUD capped by recent high

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The Australian dollar rallied as risk appetite made its way back. The pair have been looking to consolidate its gains after it broke July’s high at 1.5400. The new demand zone above 1.5280 and over the 30-day moving average has seen a resurgence of buying interest. However, a bounce above 1.5520 was short-lived and now the ball is in the buyers’ court. 1.5400 is an important line to keep the current rebound valid. Its breach would lead to a retest of 1.5280. 1.5500 is a fresh hurdle before the single currency could bounce back.
 

XAGUSD tests major resistance

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Silver climbs as the US dollar retreats across the board. A rally above October’s high of 21.20 may have put the precious metal back on track. The psychological level of 22.00 at the start of a sell-off last summer is a major hurdle ahead. A bullish breakout could lay the groundwork for a reversal in the medium term. However, a bearish RSI divergence indicates a potential loss of momentum as the price grinds the supply zone, where profit-taking could weigh on the short-term direction. 20.50 would be the first support.

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