On Thursday, the price of silver significantly fell after the statement by the Fed regarding a possibility of monetary policy tightening later this year.
At the same time, poor data from the US could not support the pair. According to preliminary statistics, the US GDP for the third quarter grew by only 1.5%, against the previous quarter growth of 3.9% and forecasted figure of 1.6%. In addition, Personal Consumption Expenditures Prices in the third quarter grew by 1.2%, instead of forecasted 3.2%.
Support and resistance
Bollinger Bands on the daily chart is turning down, while the price range is widening. At the same time, the indicator formed a signal for correctional purchases. MACD continues moving down. Stochastic is approaching the oversold zone and may try to turn up soon.
The indicators recommend waiting for clearer trading signals.
Support levels: 15.54 (local low), 15.38 (8 October low), 15.25, 15.15, 15.00 (psychologically important level), 14.77, 14.63.
Resistance levels: 15.62 (local high), 15.84, 16.00, 16.10, 16.18 (14 and 15 October highs), 16.34 (28 October high), 16.46.
Long positions can be opened after the breakout of the level of 15.65 (with the appropriate indicators signals) with targets at 15.85, 16.00 and stop-loss at 15.50. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 15.50 with the target at 15.00 and stop-loss at 15.65. Validity – 1-3 days.