Bullish Momentum with Local Divergences Emerging

In this forex review, we break down the current technical outlook for major currency and commodity pairs, including XAGUSD, XAUUSD, GBPUSD, and EURUSD. This forex review highlights key support and resistance levels, RSI divergences, and trend signals traders are watching closely as market momentum shifts across the board.

XAGUSD Analysis: Silver Consolidates Near Resistance After Breakout

Silver (XAGUSD) remains in a consolidation phase after its strong breakout above the 34.21–34.77 resistance zone, now acting as support. Price action is hovering just below the 36.87–37.00 resistance band, with the RSI trending downward while still remaining above the neutral 50 zone, suggesting some cooling off after a parabolic move. The green cloud band continues to offer dynamic support near 35.79, which aligns with a horizontal support level. However, a breakdown below 35.79 could invite deeper retracements toward the 34.77 level. Despite current consolidation, the uptrend remains intact unless we see a confirmed break below key short-term supports.

XAUUSD Analysis: Can Bulls Push Toward $3,500?

Gold (XAUUSD) has decisively broken above the key 3,392 resistance zone, now retesting the breakout zone while printing a minor divergence in RSI (65.95) relative to price. This early signal of loss in momentum comes as the RSI fails to make a higher high while price does. If 3,392 holds as support, continuation toward 3,500 becomes increasingly probable. However, a failed hold could trigger a correction to the 3,372 area. The green Kumo cloud beneath price further confirms the ongoing bullish momentum, acting as short-term support.

GBPUSD Analysis: Bearish Bias Within Sideways Structure

The pair trades in a narrow range between 1.3474 and 1.3578, with a slight bearish bias as recent highs failed to extend beyond the 1.3600 zone. Price is currently consolidating after a previous upward leg. The RSI is in mild bearish territory at 48.84, staying below the signal line (55.05), indicating weakening bullish momentum. A sustained move below 1.3474 may signal a deeper retracement to 1.3290 support. However, unless price breaks decisively in either direction, range-bound trading may continue in the short term.

EURUSD Analysis: Momentum Diverges as Price Climbs

The euro maintains its uptrend, bouncing from the 1.1473 support and still trading within bullish territory. However, the recent RSI divergence — with the indicator trending downward (currently at 56.81) despite higher price action — implies potential short-term exhaustion. If the price breaks below 1.1473, it may revisit 1.1349. Nonetheless, as long as the bullish structure holds above the green Kumo cloud, buyers may seek re-entry on dips.