Silver prices are lowering during the second week. The absence of corrections reflects the strength of the current trend. The investors are waiting for the USA FRS interest rate decision and sell the silver , which is priced in the USD. The regulator is expected to increase the rate by 0.25 basis points to 1.25%. In this case the USD will be supported in the short term, which will let to the further fall of the XAG/USD pair. If the USA FRS don’t change the rate or the fallowing the Head of the FRS commentaries reflects the careful or pessimistic mood concerning the US economy (the employment rate, the ), the traders will sell the USD, and the growth of the XAG/USD pair will restore.
The technical indicators confirm the downward trend: are pointed downwards; the volumes are growing in the negative zone, forming a sell signal.
The breakout of the level of 16.80 will reflect the development of the downward trend and will let the price to lower to 16.53.
Support levels: 16.80, 16.53, 16.34.
Resistance levels: 17.03, 17.21, 17.41.
Sell the pair below the level of 16.80 with the nearest target around 16.53 and stop loss at 16.90.