Setup favours short XAGUSD with this pattern and rising USD
Analysis for swing traders: Rising USD amidst rising rates is bearish for XAGUSD because of inverse correlation. With triangle consolidation pattern support and resistance boundaries are clearly defined. XAGUSD is at resistance now. Combined with pink shadow on top this setup favours sell. Pink setup is drawn from previous week closes see notes below.
Analysis for day traders: Continue long with current week white candle.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.
Analysis for day traders: Continue long with current week white candle.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.