Short Term Bearish Pressure On - Potential Breakout Setup

FX:XAGUSD   Silver / U.S. Dollar
226 4
Although I'm generally a bull on physical PM's, the paper prices are still bearish and in the intra-day 1hr charts are suggesting another attack on 21.35 is underway. Rallies continue to be sold and the dynamic resistance and 4hr 20ema shows the sellers are happy to take higher prices to sell again.

If the 21.35 level breaks, then look for a breakout retest setup on this level to get short targeting 20.45 and potentially much lower prices as the recent rally from $19 - $25 is in jeapordy.
Nice Analysis Chris. I also believe that we may reach 20.45 with the current trend. Waiting for a breakout setup to get in
2ndSkiesForex Ryan Tyler
Thanks mate. Yes, downside in the PM's appears to be manifesting more as time goes on. Gold is also showing signs of weakness. Should be interesting to see positioning ahead of the fed through the London session
Ryan Tyler 2ndSkiesForex
Not a valid break occurred below 21.35. Major support level perfectly worked with FOMC announcement. Are we heading to 25 again ? What do you suggest Chris ? Thanks in Advance
2ndSkiesForex Ryan Tyler
Hello Ryan,

Well the FOMC clearly had other plans. Obviously the big money was betting on a taper, so when that didn't happen, you see Gold jumping $50+ and silver rocketing along with the USD getting hammered.

The next taper cannot come till Dec, so its likely the major indices will do well, but the USD will get hammered which means PMs like Gold/Silver climb.

So yes, think its going to hit 25 again.

Will post a new chart tonight for sure though.
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