Commodities have perked up a bit so far today. Gold peaked at $1,301.30 in early N.Y. trade after basing at $1,295.60 overnight, while Silver ticked up to $16.97 after basing at $16.80 overnight. Hotter PPI data earlier was supportive, though a likely 25 basis point Fed rate hike today has already been priced in. Key for Gold and Silver will be the tone of the FOMC press conference, and signals the Fed gives as to future policy tightening.
Until FOMC however, the buyers seems to enter the XAGUSD cross, despite the fact that the Greenback has been trading mixed so far today as markets anticipate the Fed policy announcement.
In the 1-hour chart, Silver broke the peak identified the last 2 consecutive Days at $16.93. This level is the highest since March 24. Hence XAGUSD is up by 0.8% so far today, while after crossing above the 20-period MA earlier, it is currently extending the upper Bollinger Bands pattern to the upside. An extreme indecision however has been identified in the last hour, as a Gravestone Doji candle has been formed, which might be interpret as an oversold sign or a possible correction to the downside of today’s up swing.
Oppositely, technical momentum indicators support a positive momentum for the asset, as RSI just crossed 70 barrier with further space to the upside and MACD oscillator increases into positive territory above its signal line. Next intra-day Resistance level is at the $17.15 and Support is at PP level at $16.85.
The Bullish movement holds, quite strongly in the daily time-frame, as price is traded above 200-DAY SMA for 3 Consecutive sessions, while it is in an uptrend since June 4 . Next support level is set at $16.60, at week’s low.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.