Strong USD Leans On Precious Metals
LiteForex Europe | Jul 14, 2016 10:15AM ET
The price of silver has been consolidating all week while trading at its July 2014 highs.
Brexit anxiety continues to support precious metals, increasing demand for safe-haven assets like silver and gold. Silver is also supported by expectations of monetary policy easing by major central banks. At the same time, a hearty US dollar, which strengthened on strong labor data, also pressures silver and gold prices. The data resuscitated the possibility of a tightening in the US by the end of this year.
Bollinger Bands® on the daily chart are moving up while the price range is narrowing. MACD is falling and giving a weak sell signal. Stochastics turned horizontal near the border of the overbought zone.
The indicators recommend waiting for clearer trading signals.
- Support levels: 20.14 (local low), 19.88 (local low), 19.51, 19.21 (8 July low), 19.00, 18.75, 18.46, 18.31.
- Resistance levels: 20.49 (local high), 20.67 (11 July high), 21.12 (4 July high).
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