Source: PaxForex Premium Analytics Portal, Fundamental Insight
The global economy remains under stress from the Covid-19 pandemic, and new cases continue to accelerate across areas previously thought of under control. New Zealand is just one example, and the four-week delay to elections a reminder of the severity of the situation. Countries also report a surge in new cases from travelers and vacationers, defying recommendations and exposing themselves to Covid-19 before importing it back to their home country. Most government implemented assistance measures around the world are running out and need to be extended, clouding the outlook further.
The forecast for the XAG/USD remains bullish following a violent sell-off, which has been almost completely recovered. After moving below the Kijun-sen, price action accelerated above its Tenkan-sen, amid bullish accumulation. The Ichimoku Kinko Hyo Cloud is sloping to the upside, lending additional support to the expected advance in this precious metal. Will bulls drive silver into its next horizontal resistance area and a new all-time 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 27.550 to 28.350 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 28.000
- Take Profit Zone: 29.800 – 31.300
- Stop Loss Level: 27.100
Should price action for Silver breakdown below 27.550 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 27.100
- Take Profit Zone: 25.250 – 25.800
- Stop Loss Level: 27.550
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