The XAG/USD keeps trading near record lows. Silver is still affected by the uncertainty over the timing of the first interest rate hike in the USA.
On Tuesday the US dollar was supported by strong macroeconomic statistics on US Retail Sales dynamics and Factory Orders. Moreover, the American currency got extra support when the Fed’s Dennis Lockhart announced that a rate increase is likely to happen this September.
Support and resistance
Bollinger Bands on the daily chart continue the downward movement; the price range is narrowing. The indicator formed a buy signal when the price left the range though the lower MA. Nevertheless, wait for the signal to be confirmed.
MACD is losing its strong buy signal (the histogram is above the signal line). Wait for a clearer situation.
Stochastic is approaching the oversold zone, keeping the “bearish” impetus since Monday, when the apir was declining significantly. The indicator recommends keeping opened short positions in the short and the very short term.
Support levels: 14.49 (was tested yesterday), 14.37 (24 July 4 August low), 14.20 и 14.00.
Resistance levels: 14.63 (the nearest mark), 14.77, 15.00 (near 20 July local highs), 15.25, 15.68 (13 July high) и 16.00 (end of June mark).
Open long positions when the pair rebounds from 14.49-14.37 and if indicators do not contradict “bullish” trend. Set the target at the support level 15.00 and stop-loss at 14.20-14.00.
Alternatively, strong “bearish” trend may return with the breakdown of 14.37. In this case, open short positions with the target at 14.00 and stop-loss at 14.63.