Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Corporate Service Price Index for January increased by 2.1% annualized. Economists predicted a rise of 2.4% annualized. Forex traders can compare this to the Japanese Corporate Service Price Index for December, which rose 2.4% annualized.
Singapore Industrial Production for January plunged by 5.7% monthly and rose by 1.1% annualized. Economists predicted a rise of 3.0% and 4.5%. Forex traders can compare this to Singapore Industrial Production for December, which decreased by 1.3% monthly and 2.4% annualized.
The UK CBI Distributive Trades Survey for February is predicted at -33. Forex traders can compare this to the UK CBI Distributive Trades Survey for January, reported at -50.
US Final Building Permits for January are predicted to decrease by 1.5% monthly to 1.470M permits. Forex traders can compare this to US Final Building Permits for December, which rose by 1.8% monthly to 1.493M permits.
US New Home Sales for January are predicted at 680K new homes. Forex traders can compare this to US New Home Sales for December, reported at 664K new homes.
Traders will start the new trading week with a quiet economic calendar free of market-moving events. It could extend existing trends, which include a dialing back interest rate cut expectations by central banks. Inflation is sticky, and the labor market is red-hot, but high-paying tech jobs continue their path of contraction as tech companies extend their streak of layoffs. Conflicting reports about consumer health, economic conditions, and the inflation front create uncertainty. It boosts demand for safe-haven assets like gold and silver. Excessive bullishness in a few blue-chip equities created news about all-time highs, attempting to stimulate a feel-good attitude, which can boost consumer spending, but underneath the marketing hype, storm clouds are gathering.
The forecast for silver remains bullish, but short-term volatility could increase before this precious metal pushes higher. The Tenkan-sen and the Kijun-sen have flatlined, confirming the lack of upside momentum. Following a bearish crossover in the Ichimoku Kinko Hyo Cloud, the Senkou Span B also flatlined, with the Senkou Span A descending, causing the Ichimoku Kinko Hyo Cloud to widen. Traders should also monitor the CCI after it recorded a higher high in extreme overbought territory before reversing. This technical indicator remains above zero, and a reversal could trigger the next advance. Can bulls maintain control over the XAG/USD and push price action into its horizontal resistance area for a fresh 2024 high? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for Silver remain inside the or breakout above the 22.500 to 23.200 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 22.850
- Take Profit Zone: 24.600– 25.250
- Stop Loss Level: 22.200
Should price action for Silver breakdown below 22.500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 22.200
- Take Profit Zone:20.700 – 21.400
- Stop Loss Level: 22.500
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