Good morning Forex Kings,
Breaking news this morning: China announces an additional 14,000+ cases of corona virus over night! This has now take the total cases to over 60,000! This comes after China suggested they had the virus under control. There has just been some sharp declines on the USDJPY, Global indices and the AUD.
We are turning our attention to precious metals as silver is setting up a technical pattern which has worked well across both gold and silver previously.
The USD is going through the roof at present, it is a matter of time before we see a sizeable pull back on the USD. When the USD increases in price, precious metals retreat lower, and also vice versa when the USD devalues precious metals gain in strength.
It appears that silver is creating a bullish pennant formation, similar to the one below.
SILVER – Daily Charts
SILVER – Trade Setup on MT5:
Trade: BUY Market Order (My price was 17.48), stop loss set at 16.80 and take profit at 18.70
Stop loss: 68 PIPS
Take Profit: 122 PIPS
Remember to check SPECIFICATION – 1 contract = $50 USD per 00.01 movement!