Intraday Market Analysis – Euro Under Pressure

July 23, 2021

EURUSD hits resistance

The euro weakened after the ECB kept its accommodative stance unchanged. The single currency is hovering above the demand zone around 1.1710 on the daily chart.

While an RSI divergence has shown a loss in the bearish momentum, yesterday’s whipsaws so far failed to confirm a turnaround.

The break above 1.1800 has prompted sellers to cover some bets. But buyers will need to lift 1.1850 before a solid rebound could materialize.

On the flip-side, a drop below 1.1750 would lead to 1.1710.

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US 30 seeks support after V recovery

The Dow Jones 30 recouped previous losses, as weak jobs figures favor the prolonged loose monetary policy.

The V-shaped recovery has rekindled hopes of a new round of rally, not before the price clears the major hurdle ahead though.

Buyers are likely to run into strong selling interest around the peak at 35100. A clear cut could pave the way for a new record high.

In the meantime, a near overbought RSI may temper the enthusiasm. A pullback to the fresh support at 34480 could be a buying opportunity.

XAGUSD attempts rebound

Bullions recover as the US dollar retreats across the board. Silver has so far found buying interest on the daily support level at 24.70.

Once again, a divergent RSI in the demand zone foreshadowed the rebound. The break above 25.25 is an encouraging sign as the price achieves a swing high for the first time in a week. 25.70 would be the next stop if buyers can gather enough support.

Then a bullish breakout may extend the recovery to 26.40. Below the mentioned support, silver could fall towards 24.30.

By Orbex