Technical Analysis XAGEUR : 2020-02-10

Recommendation:

Strong Buy
Strong SellSellNeutralBuyStrong Buy

Above 16.5

Buy Stop

Below 15.7

Stop Loss

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IndicatorValueSignal
RSI Neutral
MACD Neutral
MA(200) Buy
Parabolic SAR Buy
Bollinger Bands Buy

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, the XAGEUR: D1 is in an uptrend, near its support line. A number of technical analysis indicators formed buy signals. The bullish momentum may develop in case XAGEUR rises above the upper Bollinger band at 16.5. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low, the lower Bollinger band and the Parabolic signal at 15.7. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop level (15.7) without reaching the order (16.5), we recommend closing the position: the market sustains internal changes that were not taken into account.

Fundamental Analysis

The euro edges lower amid weak economic statistics. Will the XAGEUR rise?

An upward movement means the strenghtening of silver against the euro. The exchange rate of the single currency fell amid a reduction in the Industrial Production in Germany in December by 6.8% year over year. This is the maximum decline over 10 years. Earlier, the Factory Orders indicator in Germany also demonstrated a strong decline in December. Investors now expect a decrease in German GDP growth forecasts. GDP of Germany and the entire Eurozone for 2019 will be published on February 14. In turn, silver and other precious metals may be in demand amid global risks. Let us note that global demand for silver coins for investment rose by 13% to 1.85 thousand tons last year.

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