XAG/USD: review and forecast on 20.08.2015

August 20, 2015

Current trend

Yesterday, silver strengthened and reached the level of 15.35 amid the publication of FOMC minutes. The Minutes from the latest FOMC meeting show that more statistics are needed to set interest rates. Uncertainty over the issue supported precious metals. Interest rates hike would make commodities less profitable and, thus, less attractive for investments.

The Chinese stock market decline also supported the pair as investors are shifting their funds to safer assets like silver.

Today, US labor market statistics are released; Initial Jobless Claims are expected to decline slightly from 274K to 272K.

Support and resistance

MACD is in the positive zone above its signal line. Stochastic lines crossed each other and directed upwards.

From the technical point of view, long positions are more preferable.

Support levels: 15.27 (Asian session low), 14.97, 14.71 (18 August low), 14.36 (24 July low).

Resistance levels: 15.65, 16.05 (27 June high), 16.46(18 June high).

Trading tips

Open long positions above 15.70 with targets at 16.00, 16.40 and stop-loss at 15.40.

Open short positions when the level of 15.25 is broken though with the first target at 15.00 and the second target at 14.75. Set stop-loss at 15.40.

Publication source
LiteForex information  LiteForex reviews

September 29, 2016
Will Brexit be more painful for Europe rather than for the UK?
The risk is increasing on the market ahead OPEC meeting in Algiers and Yellen testimonial, which will happen before the House panel. FED-fueled rally on gold starts to fizzle out as the December futures keep on a losing streak for a second day, finally dipping by 0.12% to 1,328.75...
September 28, 2016
US presidential debate moves unwind
The market’s initial response to the US presidential election debate overnight was a clear sigh of relief. The Mexican Peso, which had hit a record low against the dollar just the day before, surged higher, as too did the Canadian dollar...
September 27, 2016
Markets start last week of September on the back foot
It hasn't been a great start for global equities in this last week of September, with European indices dropping between 1.0 to 1.5 per cent during Monday’s morning session, mirroring a similar performance in Chinese and Japanese markets overnight...

Vantage FX Rating
Orbex Rating
OctaFX Rating
Grand Capital Rating
FXCM Rating
FxPro Rating

Banc De Binary Rating
Empire Option Rating
TopOption Rating
OptionFair Rating
365BinaryOption Rating
Grand Option Rating