XAG/USD Forex Signal - 8 August 2019

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Silver: New 1-year high at $17.22

Yesterday’s signals were not triggered, as there was no bearish price action at $16.82.

Today’s XAG/USD Signals

Risk 0.75%.

Trades may only be taken from 8am New York time Thursday until 5pm Tokyo time Friday.

Short Trade Idea

  • Short entry following bearish price action on the H1 time frame immediately upon the next touch of 17.31 or 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 Ideas

  • Long entry following bullish price action on the H1 time frame immediately upon the next touch of 16.98 or 16.82.

  • 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 I would take a bullish bias if the price could get established above $16.82 during the first few hours of the New York session, as it could then rise all the way to $17.30 before hitting another resistance level.

The price did get established above $16.82 and continued to rise all the way to make another 1-year high at $17.22 before pulling back a couple of times to get very close to the round number at $17.00 which seems to be supportive.

If the area at $17.00 can hold up, the price will become more likely to make another upwards thrust, possibly to a new 1-year high.

I would take a bullish bias if we get any firm bullish bounces at a support level. Although the picture seems to be becoming less bullish, it is a bullish sign that Silver outperformed Gold again yesterday.XAGUSDThere is nothing of high importance scheduled for release today concerning the USD.

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.