XAG/USD: general analysis
Current trend
Silver is growing against the fall of the US bonds yield and decrease of the geopolitical tense in Spain and North Korea. However, the most of the traders expect the metals to weaken in the middle term, as the possibility of the US monetary policy tightening this year is high. Earlier Fed’s head Janet Yellen stated that the low inflation, which prevents the regulator form its plans’ implementation, can pass, and that it has not been low for enough time to stop the slight increase of the interest rate.
Today the traders are focused on the FOMC Minutes publication. On the previous meeting the officials were focused on the positive changes in the country’s economy, and said that the interest rate should be increased once this year and trice in 2018. The Minutes are expected to support the “hawkish” Fed’s position, which will affect the pair negatively.
Support and resistance
On the daily chart the instrument is trading within the narrow range of 17.10–17.15. Bollinger Bands are pointed downwards. The price range in narrowing, reflecting the high possibility of changing of the upward trend into downward one. MACD histogram is in the negative zone, keeping a sell signal. Stochastic entered the overbought area, a strong sell signal can be formed in the nearest future.
Support levels: 16.30, 16.55, 16.75, 17.00.
Resistance levels: 17.25, 17.45, 17.60.
Trading tips
Short positions can be opened at the level of 16.95 with the targets at 16.55, 16.30 and stop loss at 17.20. Implementation period: 1–2 days.
Long positions can be opened above the level of 17.25 with the target at 17.65 and stop loss at 17.05. Implementation period: 1–2 days.
Silver is growing against the fall of the US bonds yield and decrease of the geopolitical tense in Spain and North Korea. However, the most of the traders expect the metals to weaken in the middle term, as the possibility of the US monetary policy tightening this year is high. Earlier Fed’s head Janet Yellen stated that the low inflation, which prevents the regulator form its plans’ implementation, can pass, and that it has not been low for enough time to stop the slight increase of the interest rate.
Today the traders are focused on the FOMC Minutes publication. On the previous meeting the officials were focused on the positive changes in the country’s economy, and said that the interest rate should be increased once this year and trice in 2018. The Minutes are expected to support the “hawkish” Fed’s position, which will affect the pair negatively.
Support and resistance
On the daily chart the instrument is trading within the narrow range of 17.10–17.15. Bollinger Bands are pointed downwards. The price range in narrowing, reflecting the high possibility of changing of the upward trend into downward one. MACD histogram is in the negative zone, keeping a sell signal. Stochastic entered the overbought area, a strong sell signal can be formed in the nearest future.
Support levels: 16.30, 16.55, 16.75, 17.00.
Resistance levels: 17.25, 17.45, 17.60.
Trading tips
Short positions can be opened at the level of 16.95 with the targets at 16.55, 16.30 and stop loss at 17.20. Implementation period: 1–2 days.
Long positions can be opened above the level of 17.25 with the target at 17.65 and stop loss at 17.05. Implementation period: 1–2 days.
Disclaimer
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