All eyes will be in the Jackson Hole Symposium which kicked-off yesterday. Given the current market dynamics as well as expectations, it is almost certain that US Fed Chief Powell will disappoint the markets. It is widely anticipated that he will guide towards an interest rate cut in September, but some Fed officials cautioned that such a move should not be viewed as guaranteed. A conflicting message is likely to send markets lower and push traders into safe have assets such as gold and silver. Can silver attempt a breakout above resistance and extend its strong rally? Today’s fundamental analysis will cover the upside potential and take a look at downside risk in the event of a price action reversal.
During the Asian trading session, New Zealand reported weaker retail sales for the second-quarter while the Japanese CPI clocked in weaker than forecast. A quiet European trading session, after yesterday’s upside surprise in PMI data across the board, is expected to produce low volume. Canada will report retail sales and the US will issue a report on new home sales, economists predict contractions in both reports. Will Powell give in to pressures by Trump, announce lower interest rates moving forward and cause a sell-off in the US Dollar which will boost silver? Follow the PaxForex Daily Fundamental Analysis where you grow your balance trade-by-trade!
Here are the key factors to keep in mind today for Silver trades:
- New Zealand Retail Sales excluding Inflation: New Zealand Retail Sales excluding Inflation for the second-quarter increased by 0.2% quarterly. Economists predicted an increase of 0.3% quarterly. Forex traders can compare this to New Zealand Retail Sales excluding Inflation for the first-quarter which increased by 0.7% quarterly.
- Japanese National CPI: The Japanese National CPI for July increased by 0.5% annualized. Economists predicted an increase of 0.6% annualized. Forex traders can compare this to the Japanese National CPI for June which increased by 0.7% annualized. The Japanese National Core CPI for July increased by 0.6% annualized. Economists predicted an increase of 0.5% annualized. Forex traders can compare this to the Japanese National Core CPI for June which increased by 0.5% annualized. The Japanese National CPI Excluding Fresh Food for July increased by 0.6% annualized. Economists predicted an increase of 0.6% annualized. Forex traders can compare this to the Japanese National CPI Excluding Fresh Food for June which increased by 0.6% annualized.
- Canadian Retail Sales: Canadian Retail Sales for June are predicted to decrease by 0.3% monthly and Canadian Retail Sales Less Autos are predicted flat at 0.0% monthly. Forex traders can compare this to Canadian Retail Sales for May which decreased by 0.1% monthly and to Canadian Retail Sales Less Auto which decreased by 0.3% monthly.
- US New Home Sales: US New Home Sales for July are predicted to decrease by 0.2% monthly to 645K new homes. Forex traders can compare this to US New Home Sales for June which increased by 7.0% monthly to 646K new homes.
Should price action for Silver remain inside the or breakout above the 16.800 to 17.200 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 17.000
- Take Profit Zone: 18.200 – 18.600
- Stop Loss Level: 16.600
Should price action for Silver breakdown below 16.800 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 16.600
- Take Profit Zone: 15.550 – 15.900
- Stop Loss Level: 17.000
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Online forex trading is the fastest growing segment of the forex market, join it today and find out why PaxForex is one of the prime location for new traders as well as seasoned professionals.
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