Market participants are waiting for the decision on Greece’s solution and for the return to stability. US dollar is strengthening, and the price on precious metals is falling.
Important US news is released today at 3:30 pm (GMT +3). Last week’s unemployment insurance claims report, personal consumption expenditures price index for May and the Markit PMI for June are to be discussed. Amid the good news, the US dollar should strengthen.
Support and resistance
The pair XAG/USD continues its downtrend to March lows of 15.30 and is now at the bottom correction line 15.75.
Since mid-July 2014 the price has dropped from the level of 21.45. From the end of 2014 it moves in a wide range between 18.40 (50% Fibonacci) and 15.30 (0%Fibonacci) and a narrow range between 17.00 (EMA200 on the daily chart) and 15.30 (0% Fibonacci).
The pair growth is limited by resistance levels of 16.75 (23.6%Fibonacci), which corresponds with EMA144, and 16.35 (EMA50 on the daily chart).
OsMA and Stochastic indicators on the daily and 4-hour charts recommend short positions.
Support levels: 15.30, 15.60, 15.75.
Resistance levels: 16.35, 16.75, 17.00.
Open short positions from levels 16.35, 16.20, 15.90 with stop-loss at 16.50 and target at 15.30.
After the breakdown of 16.75 alternative long positions are possible with targets at 17.00, 17.65.