XAG/USD: silver price falls

January 12, 2016

Current trend

Yesterday the price of silver fell.

The pair is pressured by strengthening across the market US Dollar that was supported by unexpectedly strong US labour market statistics that came out on Friday.

At the same time, the price is supported by instability on the Chinese stock market. Investors begin to worry that the Chinese government is failing to find a way to stabilise the market. Amid growing concerns, the price of safe-haven assets such as silver is growing.

Support and resistance

Bollinger Bands on the daily chart shows slow downward movement. MACD is falling and giving a weak sell signal. Stochastic is also moving down but is reaching the oversold zone.

The indicators recommend waiting for clearer trading signals.

Support levels: 13.77 (30 December low), 13.63 (14 December low), 13.50, 13.25, 13.00.

Resistance levels: 13.90 (local high), 14.00, 14.18, 14.30, 14.40 (28 December high), 14.48, 14.63 (7 December high).

Trading tips

Long positions can be opened after the breakout of the level of 13.87 (with the appropriate indicators signals) with targets at 14.00, 14.11 and stop-loss at 13.80. Validity – 1-3 days.

Short positions can be opened after the breakdown of the level of 13.77 with the target at 13.50 and stop-loss at 13.90. Validity – 1-3 days.

Publication source
LiteForex information  LiteForex reviews

October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...
October 19, 2016
A bullish presence on the market
The Dollar upturn seen in the recent weeks that was influenced by the firm belief in a rate hike of December fizzles out, after Yellen’s speech and the downbeat US inflation and manufacturing data...

Tickmill Rating
Grand Capital Rating
FxPro Rating
FXTM Rating
Orbex Rating
FOREX.com Rating

TropicalTrade Rating
24option Rating
Porter Finance Rating
Banc De Binary Rating
Binary Brokerz Rating
365BinaryOption Rating