The decision to keep US interest rates unchanged at 0.25% may help to recover investor demand for precious metals. Silver may get the strongest support as, besides its investment appeal, silver industrial demand may grow due to the fact that the US industry will be boosted by the weakness of the USD.
Support and resistance
OsMA and Stochastic indicators on the 4-hour and daily charts have turned to long positions. The pair broke out the resistance level of 15.00 and strengthened to the strong level of 15.30, where it fell to from 21.45 (July 2014 highs). The level of 15.30 is the 0% Fibonacci level, where the pair was returning to in March, June, July and August 2015.
The level of 15.30 is also the upper border of a downward channel on the daily chart. In case of its breakout, the pair may rise to 15.70 (ЕМА144), 16.05 (ЕМА200 on the daily chart). However, while the price remains below these levels, short positions are preferable in the medium term. Long positions are valid for the short-term trading.
Support levels: 15.00, 14.85, 14.60, 14.45, 14.00.
Resistance levels: 15.30, 15.70, 16.05.
A downward correction may start if the level of 15.15 is broken down. In this case, short positions can be opened with targets at 15.00, 14.85 and stop-loss at 15.30.
Long positions can be opened above the level of 15.30 with targets at 15.50, 15.70 and stop-loss at 15.15.