XAG/USD: Volkswagen Scandal
Mayzus | Sep 29, 2015 12:32PM ET
The scandal around Volkswagen (XETRA:VOWG_p) last week dropped prices of platinum and silver, which are widely used in the automobile industry. Another important factor pressuring the price is a possibility of an interest-rate increase in the US before the end of the year. The Fed Chair Janet Yellen confirmed these plans of the regulator last week after the US GDP growth for the second quarter was revised from 3.7% to 3.9% in annual terms.
At present, investors are moving their funds into the USD and yen.
The XAG/USD pair is moving along a descending channel toward year lows at 14.00.
On the daily, weekly and monthly charts, the price remains below EMA200 and EMA144 moving averages.
An upward correction is possible up to the level of 15.30 (the upper border of the descending channel and 0% Fibonacci).
OsMA and Stochastic on the 4-hour and daily charts recommend short positions.
- Support levels: 14.45, 14.00.
- Resistance levels: 14.85, 15.00, 15.30, 15.60, 15.95.
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