This idea is the detailed explanation of my previous idea about XAGUSD (see related ideas). Although my chart is self explanatory with all the captions but I would like to elaborate a little more in this text. We just recently broke out of the accumulating descending triangle come bearish reversal a few months ago and heading towards the previous support levels. We just recently hit the Target zone 1 at 17.55, as demonstrated by the graphics in the chart. Our tide is longer than it appears and we need to break lower than 17.00 to see the Target Zone 2.
Fundamental aspects and core analysis:
1- We did hit the 19.63 price level this week (0.618 Fibo retracement level from previous month of August 2022) but failed to break it since we did not close weekly candle above it, so we are likely to continue downwards right from here but let us just wait for a good Daily or at least H4 candle to sell
2- What bullish momentum we are looking at is the reaction of the supporting region, marked as Target Zone 1, so we can comfortably deem it correction
3- The Feds are committed to increase the interest rates to 3%+ during this coming Wednesdays FOMC meeting (21rst September 2022), therefore, USD is expected to get even stronger than now so silver is expected to react downwards
4- If we go retest Target Zone 1, we are looking at a "h" pattern which marks the formation of new low than previous one so we can expect it to break further lower either to 17.00 or Target zone 2 (but this is still to be confirmed if we bounce from here at 0.618 August monthly retrace level back to lower prices)
Be patient, always ensure proper risk management, happy trading and happier profits :-)
Fundamental aspects and core analysis:
1- We did hit the 19.63 price level this week (0.618 Fibo retracement level from previous month of August 2022) but failed to break it since we did not close weekly candle above it, so we are likely to continue downwards right from here but let us just wait for a good Daily or at least H4 candle to sell
2- What bullish momentum we are looking at is the reaction of the supporting region, marked as Target Zone 1, so we can comfortably deem it correction
3- The Feds are committed to increase the interest rates to 3%+ during this coming Wednesdays FOMC meeting (21rst September 2022), therefore, USD is expected to get even stronger than now so silver is expected to react downwards
4- If we go retest Target Zone 1, we are looking at a "h" pattern which marks the formation of new low than previous one so we can expect it to break further lower either to 17.00 or Target zone 2 (but this is still to be confirmed if we bounce from here at 0.618 August monthly retrace level back to lower prices)
Be patient, always ensure proper risk management, happy trading and happier profits :-)
