This week, the price of silver continued the decline, which started in April. Within a few days the price reached support level of 16.00, which coincides with Fibonacci 23.6%. This support level prevented further decline in the pair. Yesterday, after opening of the American session and publication of the favourable data on the American housing market, silver went down below the level of 16.00 and consolidated at 15.80.
Technically, the pair XAG/USD bounced from the lower limit of the sideways channel and corrected downwards. It is possible that the “bulls” will try to regain lost positions and go back above the level of 16.00, but chances are low. T is more likely that the price will go down to support level of 15.60. Although technical indicators show the decline, they do not give clear signals for opening transactions.
Support and resistance
Support levels: 15.80, 15.60, 15.30. The main target of the “bears” - is breakdown of the level of 15.30. Key level for the “bulls” is at 16.00.
Long positions can be opened above the level of 16.00 with the target of 16.50.Sell positions are advisable below the level of 15.60 with the target of 15.00.