Silver, NZD and USD

7 June, 2017

XAG/USD

The general geopolitical instability has greatly supported Silver, which has been experiencing a five week growth. With the tragic terrorist attack in Manchester, negative information coming from U.S. Labor combined with a floundering consumer confidence index and the UK Elections, traders do not need much more to be jumpy and run to safe havens such as gold and silver. Silver’s meteoric rise of the past five weeks managed to break through resistance levels at 17.00 and 17.50.

The economic calendar doesn’t seem to have anything significant enough to move prices this week. The US Oil Reserve data will be release today . Tomorrow, speculated increase of unemployment benefit applicants by 8K to be announced tomorrow might affect USD.

Support and resistance

  •  Support levels: 17.40, 16.80, 16.30, 15.70.
  •  Resistance levels: 18.00, 18.55, 19.00.

NZD/USD

The New Zealand dollar had the best performance compared to other secondary currencies.  This is partially due to New Zealand’s better than forecasted terms of trade indicator announced towards the end of last week. Further bolstering this positive trend or affect was high confidence in both NZ’s growth, indices and industry activities. Even in lieu of low dairy product index output the NZD/USD currency pair surpassed its 3-month maximum, even with the strong resistance margin of 0.7100-0.7130.

The only news that might affect the pair is U.S.’s weekly announcement of oil production, which will be increased in response to OPEC’s and Russia’s decision to stifle oil production to exhaust oil reserves.

Support and resistance

  • Resistance levels: 0.7200, 0.7265, 0.7350.
  • Support levels: 0.7130, 0.7080, 0.7000, 0.6940.

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