Charts of the Week: DAX diverging from US indices; Silver struggling to gain momentum
Market Analysis - Milan Cutkovic | 21 Mar 2019
* Silver is struggling to gain momentum
* The precious metal has bounced off $15 support, but the recovery has been weak and bulls are struggling to gain the upper hand
* A break below this psychological support may pave the way for further losses
* Traders might then keep an eye on 14.70 support - which is also the 61.8 % Fibonacci of the November-February rally
* The index has diverged from the US indices, as negative news around Bayer - one of the largest pharma companies in the world - have dragged it lower
* Concerns around Brexit also have a larger impact on European markets
* The recent recovery rally has stalled, and the failure at the 200 DMA is not encouraging for bulls
* A daily close below 11,500 points might force some speculators to close their long positions
* The currency pair has recovered slightly following the bounce off 0.85 support and has moved out of RSI oversold territory
* Positive RSI divergence visible on the Daily chart
* However, a clear break above 0.8680 may be needed to confirm the short-term bottom at 0.8480
* Volatility will likely remain high amid the on-going Brexit uncertainty
* Traders are keeping an eye on the upper trendline of the descending channel
* A clear break out of this chart pattern could give EUR bulls a bit of hope
* Speculators have added to EUR short positions in recent weeks, as the ECB has turned more dovish
* The next big level to watch to the topside would be 1.1480, which is close to the 200 DMA
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