Current trend

In anticipation of the US Non-Farm Payrolls, which will be released on Friday, the precious metals remain under pressure since the beginning of this week. In case NFPR turns out to be below the forecast of +225000, the US Fed can postpone the increase in the interest rates for the later time, which, in its turn, will increase the demand for the precious metals, particularly for silver.

Additional pressure on the precious metals has emerged after by yesterday’s optimistic speech of Mario Draghi, who said that financial problems of Greece can be resolved. In addition, movement in the pair XAG/USD will depend on the interest rate decision of the US Fed.

Support and resistance

On the daily chart the pair XAG/USD has rebounded from support levels of 16.75 (Fibonacci 23.6%) and 16.90 (ЕМА144) and is going down to the bottom limit of the upward corrective channel (green color). If the decline continues the pair can reach 15.00 (annual lows). On the four-hour chart the indicators OsMA and Stochastic are in the sell zone.

Resistance levels: 17.20, 16.90 and 16.75.

Support levels: 16.25, 15.90 and 15.70.

Trading tips

It is recommended to open short positions at the current price and from the levels of 16.75 and 16.90 with the targets of 16.00, 15.80 and 15.40 protective orders of 17:30. Alternative scenario: breakdown of the level of 16.90 will enable the pair to go to 17.20 (ЕМА200), аand 17.65 (Fibonacci 38.2%).

XAG/USD: under pressure die to anticipation of the Non-Farm Payrolls

XAG/USD: under pressure die to anticipation of the Non-Farm Payrolls

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