Despite their status of the safe-haven assets, precious metals keep falling amid the recent currencies fluctuations.
July silver futures on COMEX dropped by 7.3 cents to $12.695 per Troy ounce amid worries of falling demand in Europe for manufacturing raw materials. Silver is largely used in manufacturing.
Possible default of Greece and its exit from the Eurozone is likely to start reflecting the prices of precious metals already. In this case, the downward trend continues in the medium-term.
Data releases on Redbook index, the S&P/Case-Shiller Home Price index for April, Chicago Purchasing Managers’ index for June and Consumer Confidence for June are out in the US today between 3:55 pm and 5:00 pm (GMT+3).
The key news of the week is Non-farm Payrolls in the US, due at 3:30 pm (GMT +3) on Thursday. Positive statistics would allow the Fed to carry on with its promise on interest rates hike, and strengthens the USD.
Support and resistance
The pair XAG/USD continues declining to its March 2015 low at 15.30 and remains near the bottom border of the channel (38.2% Fibonacci).
Resistance levels: 16.15 (EMA200 and EMA144 on the 4-hour chart), 16.75 (23.6% Fibonacci), 17.00 (EMA200 on the daily chart).
On the 4-hour and daily charts, OsMA and Stochastic give sell signals.
Support levels: 15.30, 15.60.
Resistance levels: 16.15, 16.35, 16.75, 17.00.
Open short positions from current levels and from 15.77, 15.93, 16.15 with stop-loss at 16.50.
After the breakout of 16.75 open long positions with targets at 17.00, 17.65.