XAG/USD Forex Signal - 13 August 2019

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Silver: New 18-month high near $17.50

Today’s XAG/USD Signals

Risk 0.75%.

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

Short Trade Idea

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of $17.69.

  • Place the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 10 cents in profit.

  • Take off 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to run.

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.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

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

The price of spot silver has risen again dramatically, after spending several days off its highs. The price has risen by more than 2.60% since the start of the previous Tokyo session and looks set to rise higher as it breaks to new 18-month high prices, which should be a bullish sign.

There are two obstacles that bulls might want to consider: the major psychological level at $17.50 which is very close at the time of writing, and the key resistance level above that at $17.69.

The bullish picture is arguably increased by the fact that Gold is also breaking to new multi-year high prices above $1525.

I take a bullish bias on Silver today.XAGUSDConcerning the USD, we will get CPI (inflation) data 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.