Current trend

The XAG/USD pair closed last trading week quite successfully, having reached a new local high at 15.02. The level was overcome only on 17 July. The price keeps its «bullish» dynamics this week, promising to reach new highs.

The USD weakened after weak US Non-farm Payrolls statistics were released. Only 215K new jobs were created in July, which is significantly less than the forecast of 223K and worse than the previous value of 231K.

Though analysts gave quite guarded comments, the given figures are likely affect Fed’s intention to increase its interest rate in September. However, the statistics brings about no radical changes and the medium term prospects are still in force.

Support and resistance

Bollinger Bands on the daily chart is horizontal. The indicator formed a sell signal (the price left the top border of the range), as the pair showed an active growth last Friday. Wait for a clearer situation.

MACD still keeps the upward trend. It is recommended to keep existing long positions and wait to open new ones.

Stochastic continues growing, approaching the overbought area. The indicator recommends long positions in the short run.

Support levels: 14.77, 14.63, 14.49 и 14.37 (24 July and 4 August current record low).

Resistance levels: 15.00 (the nearest mark), 15.25, 15.40, 15.68 (13 July local high) and 16.00.

Trading tips

Open long position after the price rebounds from 14.77 (with appropriate indicators signals) with take-profit at 15.00-15.25 and stop-loss at 14.50.

Open short positions after the consolidation below 14.77 and reverse rebound from this level. Take-profit should be set near current local lows 14.49-14.37. and stop-loss no further than 15.00.

XAG/USD: dollar remains under pressure

XAG/USD: dollar remains under pressure




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