SILVER XAGUSD Analysis: Thursday 22nd August.
Yesterday the Silver price hummed along nicely in concert with the Gold price, which of course XAUUSD Gold broke the 2500 level downwards at the start of the New York session. It was a false-break down & took many of the Long-Stops before the Gold Price shot upwards.
Concerning a bit for me yesterday was the number of Bearish Head 'n' Shoulders patterns on multiple timeframes. Now be aware of this very strong Bearish H & S's pattern for XAU USD on the 1HR timeframe.
How will it play out?
Well during the Oceania and Asian session the Gold price sold off again about 4 hours ago during Thursday early afternoon trading in Australia. I put out an alert to go long Gold around the 2500 support level & the Gold price has lifted nicely thanks to a bullish Cup and Handle pattern mostly on the 1m and 2m charts.
So if Gold continues it's strength going into the London and New York sessions then Silver should also be supported and should avoid triggering this Head's n Shoulders sell pattern. Price is awfully close to the neckline and it's possible price could be selling off now at time of writing.
In economic news on todays calendar Thursday 22nd August in the USA
1. 08:00 - USA Jackson Hole Symposium
2. 08:30am - Initial Jobless Claims for USA. 232k is the key number.
* (A higher than expected reading could be taken as negative/bearish for the USD)
So a number greater > than 232K could be supportive of the Gold and Silver price imo due to the inverse relationship between the USD and Gold.
3. 08:30 - Continuing Jobless Claims 1,870K (Forecast) 1,864K (Previous)
So a higher number than 1870K will support Gold
4. 09:45 - Manufacturing PMI (Aug) 49.5 (Forecast) 49.6 (Previous)
A number lower than 49.5 will be supportive of Gold, generally speaking.
5. 09:45 - S&P Global Composite PMI (Aug) 53.5 (Forecast) 54.3 (Previous)
6. 09:45 - Services PMI (Aug) 54.0 (Forecast) 55.0 (Previous)
Both of these PMI are supportive of Gold if they are lower numbers than forecast.
7. 0:00 - Existing Home Sales (Jul) 3.94M (Forecast) 3.89M (Previous)
A lesser number on existing home sales needed here for support on gold price.
