Silver continues to trade in a volatile range while holding on to its recent gains. However, the price remains under pressure from trading below the EMA50, reinforcing the dominant short-term bearish trend.

At the same time, relative strength indicators are showing the early formation of a bearish divergence after reaching heavily overbought levels. With negative signals beginning to emerge, downside pressure on the metal is increasing.

Gold holds on to its recent gains despite emerging negative signals from the relative strength indicators after reaching overbought levels. These signals have not yet been reflected in price action, highlighting the strength of the current bullish momentum.

However, the main short-term trend remains bearish, while continued trading below the EMA50 maintains downside pressure and limits the chances of a stronger recovery in the near term.

The EURUSD pair traded in a volatile manner during recent sessions, testing the key resistance level at 1.1575, which represents the neckline of a developing bullish double-bottom pattern. The pair is also attempting to overcome the negative pressure from the EMA50, increasing the importance of this area in determining the next direction.

Meanwhile, relative strength indicators have started to show a bearish crossover after reaching overbought levels, which may limit recent gains and increase the chances of a pullback.

The GBPAUD pair recently achieved a clear breakout above the resistance level at 1.9000, recording gains by reaching 1.9122. It then shifted into sideways trading due to conflicting signals from the main indicators, particularly as the stochastic indicator attempts to exit overbought territory.

We now consider the broken resistance level as new support and emphasize the importance of the price gathering positive momentum. This would facilitate pressure on the 55-day moving average at 1.9145, and a break above it would open the way for further gains toward 1.9190 and 1.9240 respectively.

Expected trading range: between 1.9020 and 1.9145

Today’s forecast: Bullish