Silver Breaks Support with Gold Testing line – FxPremiere Group
Silver Breaks Support with Gold Testing line
- Silver furthers weakness on channel break confluence of support
- Gold Trading Basics treading around April/June double-top, August News on consolidation period
- Key levels and considerations outlined for both precious metals Silver Breaks Support with Gold Testing line
- Getting Started with Support and Resistance Trading
Daily Forex Signals
- Earlier in the week we made note of the breakdown below key channel support in precious metals, highlighting the weakness ahead. We’ll start out by looking at silver and then move onto to its big sibling, gold.
- The break below the lower, but an immediate point of hesitation came in with regard to shorts as a significant level of support was met upon the breakdown. The area just above 17th level has confluence through horizontal price support, the 211-day MA, and a retest of the July 2016 trend-line. It was nearly cracked on Wednesday with the help of a hawkish Fed, but it was yesterday where we got a solid closing print below noted support.
Moving on to Gold
Gold didn’t have any immediate support until the 1297-region; where the double-top was formed from April – June. It’s an area given the rejection and consolidation which took place there in August 2017 before eventually being overtaken. Yesterday brought a closing print below 1298, but came right around the closing highs seen during the aforementioned August consolidation period. If gold doesn’t get into gear quick-like, upon a break of 1291 look the recent decline from over 1353 to continue towards 1275.
Strong Canada Consumer Price Index (CPI)
The BoC may continue to implement higher borrowing-costs as ‘the level of GDP is now higher than the Bank had expected,’ and Governor Stephen Poloz and Co. may prepare Canadian households and businesses for another rate-hike at the next meeting on October 25 as the central bank notes that ‘there has been a slight increase in both total CPI and the Bank’s core measures of inflation.
The USD/CAD 5-Minute Chart
Forex Signals via SMS