Title: Key Forex Pairs in Focus: Gold, Silver, DAX, and EUR/USD – Market Outlook
Source: Forex Factory
Original Author: Vitor Marques
Link: https://www.forexfactory.com/news/1351100-pairs-in-focus-gold-silver-dax-eurusd
In this market analysis, trader and analyst Vitor Marques provides a comprehensive outlook on four key instruments in the forex and commodities space: Gold (XAU/USD), Silver (XAG/USD), the German DAX Index, and the EUR/USD currency pair. Each of these asset classes is situated at crucial technical levels, and current price action suggests the potential for significant movements. This detailed review will guide you through their current status on the charts and take you through potential trading setups.
GOLD (XAU/USD): Sideways but Primed for Breakout
Gold has entered a phase of consolidation following a significant rally earlier in the year. The precious metal has been trading sideways, forming a range between $2,280 and $2,400. At the time of writing, price action remains within the upper boundary of the consolidation zone.
Key Points:
– Gold has remained range-bound, unable to decisively break above resistance at $2,400.
– Support lies around the $2,280 level, which has held price on multiple attempts.
– This signals a non-trending phase, with compression of volatility prior to a likely breakout.
– On the daily chart, the price has formed a series of higher lows, suggesting underlying bullish pressure remains.
– Looking at Fibonacci retracement levels, the $2,340 zone coincides with the 50% retracement of the recent upward impulse and is acting as pivot resistance.
From a strategy standpoint, traders are monitoring the narrow range for a potential breakout. A move above $2,415 could signal a resumption of the bullish trend, targeting new highs beyond $2,450.
Trading Strategy:
– A daily close above $2,415 could provide a long trading opportunity with targets set at $2,460 and potentially higher at $2,500.
– A break below $2,280 may invalidate the bullish setup and point toward additional downside, possibly testing support at $2,225 and $2,180 levels.
– Short-term traders may consider range-bound strategies until a decisive breakout occurs.
SILVER (XAG/USD): Consolidating Before Next Leg
Silver has shown lower volatility after a strong bullish move that peaked above $31 per ounce. It is currently settling into a consolidation pattern with a potential bullish continuation structure.
Technical Highlights:
– Support is evident around the $29.30-$29.50 region.
– Resistance stands at the previous highs around the $30.80-$31.00 area.
– Like gold, silver is forming a potential ascending triangle, typically a bullish continuation pattern.
– The current market structure remains constructive, holding well above its 50-day moving average and following a clear trend line support.
Moving averages are trending higher, which reinforces the broader uptrend in silver. The upside momentum from the breakout earlier this year still has room to extend if structural resistance is taken out.
Market Outlook:
– A daily close above the $31.00 resistance could spark a follow-through move toward the $32.50 and $33.00 levels.
– If the support at $29.30 breaks, a retracement to $28.80 or even $28.00 is possible.
– Bullish setups favor buying on dips above $29.30, provided the price action confirms the continuation.
Traders are advised to keep a close eye on price behavior around $30.80 to identify any bullish continuation breakout.
DAX INDEX: Bullish Momentum Intact but Facing Resistance
Germany’s DAX Index has continued its impressive bullish performance but is now encountering resistance near its all-time highs. The equity index has shown resilience despite broader concerns across global equity markets.
Chart Observations:
– The
Explore this further here: USD/JPY trading.