Yesterday the price of silver grew amid declining US Dollar that remains under pressure prior to the Fed Interest Rate Decision that is due tomorrow.
According to forecasts, the regulator will not tighten its monetary policy at this meeting. Moreover, uncertain situation in the world economy may force the regulator to reconsider its previous plan on interest rate hikes for this year.
Investors’ attention will be focused on the press conference, which will be held after the Rate Decision.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is slowly widening. MACD is growing and giving a quite strong buy signal. Stochastic turned up near the overbought zone.
The indicators recommend long positions.
Support levels: 14.18 (13 January high), 14.00 (psychologically important level), 13.90, 13.83, 13.73 (12 January low), 13.63 (14 December low).
Resistance levels: 14.30 (local high), 14.40 (28 December high), 14.48, 14.63 (7 December high), 14.77, 15.00.
Long positions can be opened after the breakout of the level of 14.30 (with the appropriate indicators signals) with targets at 14.37, 14.45 and stop-loss at 14.20. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 14.23 with targets at 14.10, 14.00 and stop-loss at 14.35. Validity – 2-3 days.Publication source