XAG USD - Update to previousXAG USD during the APAC session provided a nice bottom out and pullback from the daily 61.8% touch.
Our analysis yesterday was invalidated during time of posting due to the pullback not completing but testing the main demand highlighted below in the blue zone .
We saw a great order block build and the sellers reject with bullish pressure from the demand block for structure.
Price is now showing us a great opportunity to head up to 29 again, however, remain cautious - the bearish move is still in play despite silver being 5.5%+ for the day.
But price on the higher timeframe has retraced to a demand imbalance and orders will be picked up - so from here we are expecting price to range between the 23.7 -24.00 now the zones are established the demand is in control.
See our previous trades . We have closed one trade previous and still have the original running from 14.88$.
Enjoy looking through our previous trades to follow the journey to now.
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Fearindex
VIX: Hit the Trade War highs. Cyclical decline starting.The CBOE Volatility Index (VIX) which measures the market's expectation of 30-day forward-looking volatility, has almost hit last Friday the highs (50.30) of the U.S. - China trade war in
February 2018. Going further back on the time line, the 53.30 high of VIX during China's economic slowdown fears in late August 2015, isn't far off either.
Today's lower opening was a natural response but even then the index remains overbought (RSI = 80.163) and when it does it is historically unlikely to stay that high for low. We are expecting a strong decline back to the ease levels of 12.75 - 13.30 in around 2 months. As you see on the chart and the last two highs, this is a cyclical process of VIX and the occurence of the next shock event can even be timed. Regardless of timing, the current VIX levels present an optimal sell opportunity.
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