XAG/USD traded higher on Friday after it hit support near the 15.37 level. The metal continued drifting north during the European morning Monday, hitting resistance at the 15.52 barrier, which is slightly below Friday’s peak and is also marked by the high of March 13th. Overall, silver has been in a recovery mode since March 7th, with the price structure staying supported by a short-term upside line drawn from the low of that day. So, having that in mind, we believe that there are decent chances for some further recovery, at least in the short run.
A break above the 15.52 level could encourage buyers to challenge Thursday’s high, at around 15.63. However, we would like to see a decisive move above that hurdle before we get more confident on the bullish case. Such a move would confirm a forthcoming higher high on the 4-hour chart and may initially aim for the 15.70 obstacle, the break of which may see scope for more bullish extensions, perhaps towards the 15.80 area, which is fractionally below the peak of February 28th.
Looking at our short-term momentum studies, we see that the RSI rebounded from the crossroads of its respective upside support line and the equilibrium 50 line. The MACD, even though slightly below its trigger line, shows signs of bottoming marginally above zero. It could cross above its trigger soon. These indicators suggest that the white metal may have started picking up positive momentum again, which corroborates our view for some further short-term advances.
In order to start examining whether the bulls have abandoned the field for a while, we would like to see a dip below 15.37. Such a move could signal the break below the aforementioned short-term upside line and may open the path towards the 15.26 barrier, defined by the low of March 20th, Another break lower, below 15.26, may allow the slide to continue towards a longer-term upside support line, taken from the low of November 11th, or even the 15.13 zone, marked by the low of March 14th.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.