Yesterday, silver strengthened and reached the level of 15.35 amid the publication of FOMC minutes. The Minutes from the latest FOMC meeting show that more statistics are needed to set interest rates. Uncertainty over the issue supported precious metals. Interest rates hike would make commodities less profitable and, thus, less attractive for investments.
The Chinese stock market decline also supported the pair as investors are shifting their funds to safer assets like silver.
Today, US labor market statistics are released; Initial Jobless Claims are expected to decline slightly from 274K to 272K.
Support and resistance
MACD is in the positive zone above its signal line. Stochastic lines crossed each other and directed upwards.
From the technical point of view, long positions are more preferable.
Support levels: 15.27 (Asian session low), 14.97, 14.71 (18 August low), 14.36 (24 July low).
Resistance levels: 15.65, 16.05 (27 June high), 16.46(18 June high).
Open long positions above 15.70 with targets at 16.00, 16.40 and stop-loss at 15.40.
Open short positions when the level of 15.25 is broken though with the first target at 15.00 and the second target at 14.75. Set stop-loss at 15.40.