Forex trading short on Silver – Gold in symmetrical pennant waiting for Fed [Video]

Last week we looked at Silver XAGUSD and we got some positive comments on YouTube, Facebook and Instagram.

So, let’s continue with Silver and we see that my warning about the stochastic oscillator was correct.

Price action continued to rise on the daily chart and the stochastic oscillator has followed higher and now it is overbought so we will monitor this looking for a move lower on both the indicator and price action.

If we move out to the 4-hour chart, we see a similar rise in price action and our technical indicators still moving up.

You may want to wait for the stochastic oscillator to move up and turn back here as well, and for the signal line of MACD to pass out of the histogram which is a bearish sign.

The situation on Gold is still the same as last week with price action consolidating even more.  Why?

Before we look at, “Why?”, let me show you a trick. 

I usually only like to use Bollinger Bands in ranging markets but there is a cool thing called the Bollinger Squeeze which may be happening now.

Here, for example, we see the squeeze which is almost always followed by a volatile move.

Here are two more from last year.

Price is consolidating on gold and most USD pairs as the market is waiting for Wednesday’s Interest Rate Decision and, more importantly, the press conference afterwards, then, the US Non-Farm Payrolls on Friday.

If the Fed want to lower Interest Rates sooner, price action on Gold and Silver will rise.

On Thursday the Bank of England will also, be looking at Interest Rates.

Some analysts feel that the BoE will reach their 2% inflation target in April, one year ahead of schedule which will mean possible Interest Rate cuts sooner and a weaker GBP.

Right now, we can’t see a safe short trade on GBP but watch for our Thursday video where we will sum up the USD moves and analyse the opportunities on GBP.

That’s all for now.  Thanks for watching and don’t forget to Like, Follow and Subscribe and feel free to leave a comment on what you would like to see in future videos.