The dollar was mixed against its G10 rivals during the European morning with US lawmakers struggling to find an agreement to increase the debt limit. The New Zealand dollar managed to gain against the greenback overnight after Real Estate Institute of New Zealand reported a rise in house sales in September (+19.0% yoy vs +8.5% yoy prior). On the other hand, SEK experienced the biggest losses among the G10 currencies despite the absence of market-affecting news for the currency. The Euro was virtually unchanged despite a better-than expected EU Industrial production in August (-2.1% vs -2.5% expected). The picture is pretty similar among the EM currencies as the dollar did not record any major moves against them. Most major European bourses moved lower (except FTSE 100 and IBEX 35) as S&P 500 futures traded down 0.7%. Finally, gold and silver moved higher amid the US debt stalemate.
Silver has been moving in a short-term downtrend since the 8th of October. During the European morning the metal rose after finding support at the 21.10 (S1) level and at the time of writing is testing the barrier of 21.43 (R1). That hurdle coincides with the 40-hour moving average value (which provided significant resistance for the downtrend), the upper Bollinger band and the blue downtrend line. A violation of that ceiling should have larger bullish implications and is likely to direct the action towards the next resistance at 21.64 (R2). However, the bias remains to the downside, since the downtrend is still valid and a bearish crossover of the moving averages is still in effect.
Support: 21.10 (S1), 20.95 (S2), 20.66 (S3)
Resistance: 21.43 (R1), 21.64 (R2), 21.82 (R3)
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