Published On: Thu, Mar 16th, 2017

XAG/USD: Fibonacci analysis

InstaForex

The development of the upward trend in the middle term period is possible.

On the 4-hour chart the price is trying to consolidate above the correction cluster 17.40 (38.2% for the short term and the middle term trend).In this case the price can grow to the levels of 17.62 (correction cluster 50.0% for the short term and 38.2% for the long term trend), 17.80 (correction cluster 61.98% and 23.6%). However the Stochastic is reversing in the overbought area, which can result in the lowering to 17.18 (correction 23.6%) and 17.06 (correction 50.0% and the middle line of the Bollinger Bands).

On the daily chart the price rebounded from the level of 16.87 (correction 23.6%) and is moving to the level of 17.60 (correction 38.2%, the middle line of the Bollinger Bands, the downward fan line 38.2%), which is not the significant obstacle. If the price is set above the line and the middle line of the Bollinger Bands, the price can grow to the level of 18.16 (correction 50.0%). In the opposite scenario the price can return to the area of 16.87.

Trading scenario

Open long positions above the level of 17.48 with the target at 17.62 and 17.80. Stop loss is at 17.35.

Sell the pair if the price is set significantly below the level of 17.40 with the target at 17.18, 17.06 and stop loss at 17.50.

Forex Analysis

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