On Tuesday, the USD is falling against the safe-haven assets (gold, the Yen and the Franc), despite statements by few members of the Fed that the US economy is ready for the interest rate to be increased. However, silver is showing a rather moderate growth as in addition to investment purposes, it is also used in manufacturing. And while the Chinese economy is slowing down together with poor US data, the pair is going to remain under pressure.
During the week, volatility on the markets is expecting to be high prior to important news releases from the US. If forecasts on the NFPR data are confirmed on Friday (220 thousand new jobs in August), investors’ confidence in the September US rate increase would grow and the USD strengthens.
Support and resistance
After last week’s fall, the XAG/USD pair corrected and is now trading near the level of 14.70 (EMA50 on the 4-hour chart, EMA200 on the hourly chart). The pair remains below important resistance levels of 16.25 (ЕМА200 on the daily chart), 15.85 (ЕМА144) and is moving towards year lows and the bottom border of descending channel at 14.00.
On the daily chart, OsMA and Stochastic are turning to purchases, while on the 4-hour chart they give a sell signal.
Until the price remains below the level of 16.10 (EMA200 on the monthly chart), short positions are preferable.
Support levels: 14.00, 14.10, 14.40.
Resistance levels: 14.70, 14.95, 15.30.
Pending buy orders can be placed at 14.80 with targets at 14.95, 15.30 and stop-loss at 14.50. Medium-term long positions can become viable after the breakout and consolidation above the level of 15.30 with targets at 15.60, 15.80, 16.20.
Pending sell orders can be placed at 14.40 with targets at 14.10, 13.85 and stop-loss at 14.75.