The pair remains near its 6-year lows and trading within a sideways channel between the levels of 14.44 and 14.17.
The pair is pressured by increased investors’ expectations of an interest rate hike in the US in December. Markets estimate the possibility of rates increase in December at around 70%.
Therefore, at present all attention is focused on macroeconomic statistics from the US. Today data on the Consumer Price Index is due in the US, which is one of the key indicators for the FOMC that will affect their monetary policy decision. According to forecasts, the index will grow by 0.2% against the previous month and by 0.1% against the previous year. If forecasts are confirmed the XAG/USD pair falls.
Support and resistance
On the 4-hour chart, MACD’s histogram is above its signal line and forming a sell signal. Stochastic lines are in the overbought zone, while the %K line is about to cross the %D line thus indicating a possible downward price reverse.
Support levels: 14.17, 13.96, 13.75.
Resistance levels: 14.44, 14.60, 14.85.
Short positions can be opened from the level of 14.15 with targets at 13.98, 13.75 and stop-loss at 14.20.
Long positions can be opened after the breakout of the level of 14.45 with targets at 14.60, 14.85 and stop-loss at 14.40.