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Morning Market Update – XAG/USD

By:
Sylvester Stephen
Updated: Aug 2, 2017, 08:17 UTC

Silver is pushing higher from the support given at 16.65 in the four-hourly chart. Key resistance is given at a distance at 16.83. The commodity is having

Silver

Silver is pushing higher from the support given at 16.65 in the four-hourly chart. Key resistance is given at a distance at 16.83. The commodity is having difficulties to hold above the 16.83.

In the long term, the pin bar rejection indicates that further downsides are very likely. Resistance is located at 16.83. Strong support can be found at 16.65.

Silver is trading in the red again and resumes the bearish candle. The price is going down as the pair is unable to hold above the resistance level. The price decreased after the failure to reach and retest the outside sliding line of the major resistance and now is pressuring the level and the warning line. It could come even to retest the levels before climbing much higher. Only a drop below the support will confirm a larger drop in the upcoming season. We believe that these factors could only force the price to drop sharply.

The dollar gains some momentum as the market continues to slowly rise. The earlier candle was another indication of decline in the day. The daily momentum indicators have all now taken on a corrective outlook, with Stochastic falling below 50 and having crossed lower. The pair is now back into the old pivot band so it will be interesting to see the reaction. The likelihood is that the support shall be broken which has often been seen as an inflection point and will now be tested. The four-hourly chart shows the resistance is bolstered now as a key level.

Silver price continues to provide negative trading to settle below 16.00 barrier, reinforcing the expectations for achieving more of the downside moves that target testing 16.41 level mainly, pointing that the steadiness of this level against the negative pressure will turn the price to resume the main bullish trend.

Therefore, the bearish bias will remain preferred for today unless breaching resistance level and holding above it, where breaching this level will lead the price to achieve positive targets that begin at 16.93 mainly.

Expected trading range for today is between 16.43 support and 16.83 resistance.

Expected trend for today: Bearish
For more detailed analysis from the author, please visit NoaFX.

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