The contracting range across the Dec-January initial range is a sign the market is waiting for news.
The recent green uptrend (boxed in green) is still intact but it sitting on support. The rally has had 3 weeks where the price range EXPANDED on the upside where the market ADVANCED GREATER THAN THE PREVIOUS WEEK'S RANGE, which is a very phenomenon. It is a sign the buyers are aggressive and the sellers are weak. The decline off of the recent high at 17.75 is a smaller range and again this week is a smaller range still, which is a sign that sellers are weak. The buyers are there, but they are patient for the time being. But this is the place to be buying against with the lowest risk and most upside potential. Once another rally starts, you can add to your position.
Another development is that the rally made a new, higher low in this leg of the rally than the March rally.
Tim 8:40AM-9:02 EST - May 29, 2015 16.714 last XAGUSD