XAG/USD Forex Signal

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Silver: New 18-month highs above $17.69

Yesterday’s signals were not triggered, as the bearish price action happened slightly above the resistance level identified at $17.69.

Today’s XAG/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time Tuesday and 5pm Tokyo time Wednesday.

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of $18.20

  • 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 Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of $17.50 or $17.23.

  • Place 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

I wrote yesterday that the price had risen strongly to challenge the resistance level at $17.69 which I identified some time ago. I had thought that $17.34 and $17.23 were interesting to watch for support at following a deep bearish retracement. However, the price only fell as far as $17.50 before reversing bullishly, which is a bullish sign, as this is not just a logical “flipped” support level but also a major psychological level.

The price has gone on to invalidate the former resistance which I had placed at $17.69 and we have a short-term bullish pennant pattern, both of which suggest that the price is going to break up to reach new 18-month highs. I will take a bullish bias if we get a strong hourly close above the upper trend line of this pennant during the New York session later today.XAGUSDRegarding the USD, there will be a release of CB Consumer Confidence data at 3pm 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.