The price of silver resumed its fall on Monday despite weakening US Dollar across the market, which is under pressure as important publications from the US are due during the week.
On Thursday, the Fed will hold a meeting where the regulator is going to make a decision on the interest rates change. The majority of experts suggest that the rate increase is going to be delayed until December this year.
Due to a large number of important macroeconomic publications during the week, a volatility is expected to be high.
Support and resistance
Bollinger Bands on the daily chart is directed horizontally, while the price range remains narrow. The indicators formed a buy signal as the price has left the bottom border of the range. MACD is falling and giving a sell signal. Stochastic is approaching the oversold zone.
The indicators recommend considering short positions or wait for a clearer trading signal.
Support levels: 14.37 (local low), 14.20, 14.00 (26 August low).
Resistance levels: 14.49 (local high), 14.63, 14.77, 15.00 (local high), 15.15, 15.25, 15.40, 15.64 (21 August high).
Short positions can be opened after the breakdown and consolidation below the level of 14.37 with the target at 14.00 and stop-loss at 14.63.
Long positions can be opened after the price rebound from the level of 14.37 (with the appropriate indicators signals) with targets at 14.77, 15.00 and stop-loss at 14.20, 14.00.Publication source