The pair XAG/USD remains in the descending channel since 19 May and investors can only be attracted to it in the event of market instability and the weakening of the USD. In the near future such event can perhaps be rate hike in the US, however, until then the pair is set to decline.
Today’s news is unlikely to have an impact on precious metals. However, a piece of news that can affect it is the US construction data. Markets expect the number of approved construction permits and the number of new houses to fall, which should lead to a decline in the USD and an increase in precious metals.
Support and resistance
At the moment the nearest support levels are: 15.86 and 15.60.
Resistance levels: 16.25 and 16.45. These are the most frequently recorded levels over the past three months.
Since the beginning of European session the pair has traded at the level of 16.00. It makes sense to open long positions above the level of 16.10 with the target of 16.45. As an alternative scenario it is possible to place pending order to sell at the level of 15.95 with the target of 15.60.