Today, silver and gold prices continue falling to 2009 lows. During the times of growing USD, precious metals lose attractiveness as returns on the investments are falling amid growing dollar.
In the long run, the pair can find a support in increasing demand for silver amid recovering US economy as silver is widely used in manufacturing.
Important news for today include the GDP data for the second quarter of the year and the GDP Price Index in the US, due at 3:30 pm (GMT +3). On Friday, Chicago Purchasing Managers’ Index is out.
Support and resistance
The pair is trading within a descending channel near 2014 lows at 14.65.
On the daily chart, OsMA and Stochastic give buy signals, but remain near the zero line. On the hourly and 4-hour charts, they give sell signals.
Support levels: 14.65, 14.45, 14.00.
Resistance levels: 15.10, 15.30, 15.60.
Open short positions from the current levels and from 14.80, 15.00, 15.10with targets at 14.40, 14.10 and stop-loss at 15.20.
Long positions can be opened after the breakout of the level of 15.30 (with the appropriate indicators signals) with targets at 15.50, 16.00, 16.20, 16.60, 16.75.