XAG/USD Forex Signal

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Silver: New 18-month high above $17.69

Today’s XAG/USD Signals

Risk 0.75%.

Trades must be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.

Short Trade Idea

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of $17.69.
  • Put the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 10 cents in profit.
  • Remove 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to ride.

Long Trade Idea

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of $17.23.
  • Put the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

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XAG/USD Analysis

We are again seeing Silver in USD terms breaking to new long-term 18-month high prices. There was a new high closing price at the end of last week which was very near the weekly high, and this typically gives a further increase in the trend over the weekend and so it proved to be today.

The price rose strongly to challenge the resistance level at $17.69 which I identified some time ago. The level held, and the price has made quite a deep bearish retracement. It seems the retracement is finding $17.50 a supportive obstacle so far, but it is the probable support levels below that at $17.34 and $17.23 which look more interesting. I would be prepared to take a bullish bias if we get a healthy bounce at either level.

In this era of central banks competing to make their currencies weaker, being long of precious metals is often going to be a trade which makes sense.

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Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.