The XAG/USD pair is slightly growing amid weakening US Dollar.
The USD is under pressure after poor data released on New Home Sales for September that fell by 11.5% against forecasted decline of 0.4%, and Dallas Fed Manufacturing Business Index that in October declined from -9.5 to -12.7 points.
In addition, investors are being cautious prior to the publication of the Fed Interest Rate Decision that is due on Wednesday. Currently the question is whether the regulator increases interest rates in December or move the launch of a tightening cycle to 2016.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally, while the price range significantly narrowed. MACD is falling and giving a weak sell signal. Stochastic moved away from the oversold zone a few days ago and growing.
Support levels: 15.84 (local low), 15.62 (21 October low), 15.38 (8 October low), 15.25, 15.00, 14.77.
Resistance levels: 16.00 (local high), 16.18 (15 October high, upper border of a sideways channel), 16.46, 17.00.
Long positions can be opened after the breakout of the level of 16.00 (with the appropriate indicators signals) with targets at 16.45, 17.00 and stop-loss at 15.85. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 15.65 with the target at 15.20 and stop-loss at 15.80. Validity – 1-3 days.