13 August, 2015
Yesterday, the XAG/USD pair rose significantly and reached local highs near 15.50, the highest mark for the last month. The price went up as the US Dollar is weakening affected by rapid devaluation of the Yuan, started on Tuesday. Analysts are expressing concerns that such unexpected events may significantly influence the timing of the US interest rate hike which is currently the main support for the US currency.
Support and resistance
Bollinger Bands on the daily chart indicate that an active “bullish” trend is forming. The price range is widening, however, it currently fails to keep up with the price dynamics. A correctional decrease is possible in the short run.
MACD continues steady upward trend. It is recommended to keep opened long positions and wait to open new ones.
Stochastic has reached its highs in the overbought zone and is turning to sideways. It indicates that the pair will be significantly overbought in the short run. A correctional rollback is worth considering.
Support levels: 15.40 (the pair is testing this level), 15.25, 15.00, 14.77, 14.63, 14.49 and 14.37 (24 July and 4 August record low).
Resistance levels: 15.58 (the nearest mark and 12 August local high), 15.68 (13 July high), 16.00 (reached at the end of June) and 16.46 (18 June high).
Open long positions when the pair bounces off the current supper levels around 15.25 (with appropriate indicators signals). Set the target at 15068 and stop-loss at15.00-14.77.
In case of a correctional rollback with the breakdown of 15.00, open short positions with targets at 14.63-14.49 and stop-loss at 15.40.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...