Current trend

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.

Trading tips

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.

XAG/USD: silver and precious metals are falling

XAG/USD: silver and precious metals are falling

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

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