XAG/USD Forex Signal - 26 August 2019

Adam Lemon

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.

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.

xagusd

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

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
Comments

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments
Add Comment

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.