Morning Market Update – XAU/USD

Silver commodity extended its recovery leaving risk higher in the days ahead. However, beware of the pullback threats. On the downside, support comes in at the 17.16 level where a break will turn attention to the 17.09 level. Further, a cut through here will open the door for a move lower towards the 17.04 level. The pair below here could trigger further downside pressure targeting new low level. Conversely, the pair’s resistance resides at the 17.31 level where a break will aim at the 17.38 level. A turn above there will expose the 17.39 level. Further out, resistance stands at the 17.32level. The pair’s four hour oscillator is bullish and pointing higher suggesting further strength but has been in the 90.0 zone. All in all, silver looks to recover further higher.

Silver has further improved as by the move above the resistance at the 17.17 level. The precious metal is now trading above the 17.17 level. The four-hourly support can be found at this levels and it is expected to show further increase.

In the long term, the trend is rater negative. The pair’s resistance is located at the 17.32 level. Its strong support can be found at the17.17 level.

The bulls would regain control on a decisive move back above the pivot band at the 17.23 level. However, this is a significant medium term barrier and one which would complete a five session base pattern. The resistance also coincides with the previous resistance now turned support and capped the upside aside from a brief intraday spike to the 17.23 level at the beginning of the day. The recent candle was much in favor for the bulls with a consolidation at a high of these levels as the momentum indicators. The pair’s stochastic also approach key areas where they have been holding above the 80.0 levels. The four hourly chart shows a decent uptrend has been broken now with the resistance of 17.23 now increasingly key near term. The four hourly oscillators consistently dropping back below 90 would reflect a less bullish trend and dropping below neutral, but the 17.17 support is the key. The pair below the 17.17 support level puts 17.08 back in sight.

Silver price continues to rise to begin testing the resistance line that appears, and the price finds support with the EMA50 that forms positive pressure against the intraday trading to confirm the continuation of the bullish bias in the upcoming sessions.

In general, we will continue to suggest the bullish trend on the intraday and short term basis as long as 17.17 level remains intact, noting that breaching 17.23 will reinforce the expectations of achieving our positive targets that start at 17.32 and extend to 17.35.

Expected trading range for today is between the 17.17 support level and 17.32 resistance level.

Expected trend for today: Bullish

 
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