Silver (XAGUSD) in Double Top. Canada and EU to Lower Interest Rates? US NFPs in Focus.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on the DAX, EURUSD, EURCAD, USDCAD, and Silver (XAGUSD).

We were looking at a potential reversal in the silver bull run and we now have a classic signal.

Price action has formed a Double Top with the neckline just over $30.

If we break support we have a long way to fall and we have MACD looking bearish.

But, be aware of the stochastic oscillator as it is oversold and we may get a pullback first.

If we look at the daily chart, we see the same indication with the stochastic oscillator.

However, the signal line on MACD passed out of the histogram exactly at this bearish engulfing candle which is another classic bearish sign.

Don’t forget that we trade silver with USD as the quote currency and all the USD pairs, except USDJPY are moving in the opposite direction of XAGUSD.

Therefore, if we see some USD strength, Silver could fall dramatically.

We could see any number of economic news events, including the US Non-Farm Payrolls, that could trigger this so watch your calendars.

We also note that Canada may be lowering their Interest Rate on Wednesday and the ECB on Thursday.

We see mixed strength and weakness with CAD pairs, including this Double Top on USDCAD, so the opportunities abound after the announcement.

We see the same situation with EUR pairs so watch for volatility here.

We spotted a gap trading opportunity last week on the DAX 40, and the gap was filled.

But, we see another short opportunity in the near future with and we are waiting for a bearish reversal.

On the daily chart, we see that MACD picked the reversal point and we see bearish signs.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.