17 August, 2015
In the end of last week, the price of silver significantly fell and returned to the level of the beginning of the week. However, the growth possibility is still in place considering worsened prospects of the September start of monetary policy tightening in the US.
The major role in the last week strengthening of precious metals and the USD weakening played the Yuan devaluation and the followed forecasts reconsideration of the US interest rate increase dates. However, the USD gained support from Retail Sales and Industrial Production data in the US, which came out according to forecasts.
Support and resistance
Bollinger Bands on the daily chart is growing. MACD has failed to consolidate above the zero line, and is trying to turn down. Stochastic has left the overbought zone and is rapidly falling.
The indicators recommend the consider opening short positions in the short-term.
Support levels: 15.15 (14 August low), 15.00, 14.77, 14.63, 14.49, 14.37 (24 July and 4 August lows).
Resistance levels: 15.25 (local high), 15.40, 15.68 (12 August high), 15.68 (13 July high), 16.00 (psychologically important level).
Open short positions after the breakdown of the level of 15.00 with the target at 14.37 and stop-loss at 15.50.
Long positions can be opened after the price rebound from the level of 15.15 (with the appropriate indicators signals) with targets at 15.68, 16.00 and stop-loss at 14.77.
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...