Current trend
After a sharp fall on Monday, precious metals gained some of their losses back on Tuesday.
Because silver is widely used in manufacturing, recovering US economy is creating some prerequisites for a silver rebound in the long-term. Thus, at present silver looks more attractive than gold to invest in.
Important news for this week include Consumer Price indices in Australia and the Bank of England Minutes on Wednesday, the RB of New Zealand Interest Rate Decision and Retail Sales data in Canada on Thursday.
A strengthening USD is going to determine the downward movement in the pair in the medium-term. In case of negative news from the US, a correction is possible.
Support and resistance
The XAG/USD pair is moving along the downward channel and almost reached 2014 lows at 14.45.
On the 4-hour chart, OsMA and Stochastic give buy signals. However, on the daily and weekly charts they remain in the sell zone.
The pair growth is constrained by the following resistance levels: 15.60 (EMA200 and EMA144 on the 4-hour chart), 16.35 (EMA144), 16.75 (23.6% Fibonacci and EMA200 on the daily chart).
Resistance levels: 15.10, 15.30, 15.60, 16.00, 16.35, 16.75.
Trading tips
Open short positions from 14.80, 15.10, 15.30 with targets at 14.45, 14.00 and stop-loss at 15.80.
Open long positions after the breakout of the level of 15.60 (with appropriate indicators signals) with targets at 16.00, 16.35, 16.75.
