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Re: Daily Market Research by Capital Street FX

Postby CSFX.Support » Thu Sep 15, 2016 8:00 pm

GBPUSD Ignores Subdued U.S data, Weighed by Potential BOE Rate Cut – Longs Still Profitable


British Pound snapped yesterday’s gains versus the U.S dollar after the Bank of England telegraphed a potential rate cut later this year. Meanwhile, faltering US retail sales and producer prices in August didn’t provide much support on the currency pair.

After cutting its benchmark interest rate and unleashing a quantitative easing program worth £435 billion ($576 billion) last month to cushion an economic downturn following the Brexit vote, the BOE left unchanged its key interest rate at a record low 0.25% and made no further changes to the size of its QE program on Thursday.

Given the recent data that reported the U.K economy performing stronger than expected, BOE officials were also unanimous on continuing with the plan of purchasing gilts and corporate bonds, and offering ultra-cheap loans to banks. However, nine members of the Monetary Policy Committee noted that near-term data could not be used to draw inferences for longer-term forecasts. Thus, there is a chance for a further cut in interest rates in 2016, should the economy weaken.

Earlier on Thursday, the Office for National Statistics reported that retail sales fell by 0.2% in August compared to July, translating into a 6.2% advance compared to the same period last year. Today’s data reported a smaller decline than the 0.4% fall expected, after July’s sales figures had been revised upwards, marking the strongest annualized rate of growth for the month of July since 2001.

In the U.S, a chain of economic data came out earlier today. But most of them failed to generate positive signals. U.S. wholesale prices were reported to be flat in August, mostly because of sharp declines in the cost of food and gasoline. This consequently dampened retail prices for the same goods and dragged the overall retail price index down by 0.3%.

Sales at U.S. retailers fell for the first time in five months. Not only were department stores suffering losses due to the robust of online sales, internet sellers were also hit for the first time since the start of 2015. Only grocers and clothing outlets recorded an increase last month. Supported by back-to-school demand, sales at apparel stores climbed the most by 0.7%.

Core retail sales, which exclude automobiles, ticked lower by 0.1% in August after falling by 0.4% one month earlier.

In a separate report, the Federal Reserve announced that output at American manufacturers fell 0.4% in August. The consensus forecast had called for a decline of 0.2%. The results are consistent with the ISM’s factory survey for August, which had signaled a contraction, and also worsened the outlook for producers, after a private survey of purchasing managers last week showed that manufacturing contracted in August.

The softer than expected data from the US, however, failed to lend support to the GBP and GBPUSD was trading down 0.2% in late morning US trade.

GBPUSD has been on a decline for more than a week, with the price action moving from the upper boundary of the upward trading channel straight to the lower boundary of the trading channel and also breaking through the short and long term MA’s in the process. The pair eventually fell out the range and has failed to crawl back. However, the down move is now facing a strong zone of support marked by the downward sloping trendline that connects previously registered lows of significance. Further declines are expected but a bounceback may occur when the market attempts a test of the red trendline.

Trade suggestion

Buy Limit at 1.31650, take profit at 1.32100, stop loss at 1.31300
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Natural Gas/USD signal by Capital Street FX

Postby CSFX.Support » Thu Sep 15, 2016 8:06 pm

Natural Gas/USD signal by Capital Street FX

From GMT 15:00 14/09/2016
Till GMT 21:00 15/09/2016

Sell at 2.850
Take profit at 2.810
Stop loss at 2.890
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Daily Market Research by Capital Street FX

Postby CSFX.Support » Fri Sep 16, 2016 8:09 am

Daily Report on September 16, 2016



U.S equities rebounded overnight, powered by a softer greenback and a surge in oil prices. Faltering U.S data released on Thursday indicated underlying weakness in the economy and sapped any confidence that the U.S is strong enough to withstand headwinds stemming from a rate tightening. The prospect of a rate hike next week was certainly off the table, causing the U.S dollar to weaken versus most of its peers.

Consequently, Asian shares rose from a six-week low on Friday. The MSCI Asia Pacific Index climbed 0.5 percent, trimming this week’s slide to 2.3 percent. Japan’s Topix index nudged up 0.4 percent, while benchmarks in Australia, New Zealand and Singapore also gained at least 0.8 percent. Markets in China, Taiwan, Malaysia, and South Korea were closed today for holidays.

Crude prices resumed their decline in Asian trading hours, heading towards finishing lower on the week as traders grow concerned about the resumption of supplies from OPEC members such as Libya and Nigeria, whose production had been disrupted by domestic conflicts and political turmoil. Brent crude was trading around $46.20 per barrel while light sweet crude, WTI slid back to around $43.50 per barrel.

The two central banks holding their policy meetings yesterday, decided to leave their rates unchanged. The Bank of England maintained its benchmark interest rate at a record low of 0.25% while the Swiss National Bank also held its deposit rate unchanged at -0.75%. The Bank of Japan and the U.S Federal Reserve are scheduled to release their rate decisions next week. While a U.S rate hike possibility is almost zero, analysts are still divided on whether the Japanese central bank could make any changes its stimulus program on Sep. 21.



Technicals

AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD is attempting to head out of the downward slopping channel after pulling back from the 50% retracement level. However, besides the upper boundary of the channel, the pair is facing another stiff resistance that is the 38.2% level at 0.75255. With the %K line penetrating the %D line from above, near the overbought area, AUDUSD is expected to give up its rise and tumble.

Trade suggestion

Buy Limit at 0.74900, Stop loss at 0.74520, Take profit at 0.75255



EURJPY



Fig: EURJPY H4 Technical Chart

EURJPY has been locked between the support at 113.900 and the resistance at 116.130 for three weeks. The pair has broken through both the short-term and long-term MA's and is heading down towards the lower boundary of the price range. With the confirmation from the RSI that has lowered below 50, the Euro is expected to lose ground against the Japanese Yen.

Trade suggestion

Sell Stop at 144.535, Stop loss at, Take profit at 114.225



GBPAUD



Fig: GBPAUD H4 Technical Chart

GBPAUD has been in a strong rally with firm support from the two MAs placed below the price action. The pair has consistently reversed higher after every attempt to test the MA20 or the MA50, and this time is not expected to be an exception. The British pound has just pulled back from the 50-period moving average and is expected to extend the rise versus the Aussie.

Trade suggestion

Buy Stop at 1.76300, Stop loss at 1.75750, Take profit at 1.76710



GOLD



Fig: GOLD H4 Technical Chart

Gold has fallen back below the resistance at 1315.00 after the spike in volatility yesterday. At one point the precious metal attempted a peek beyond the major level of resistance at 1325.00. A divergence between the –DI line and the +DI line, combined with a rising ADX, has confirmed a strengthening downtrend. Further declines are forecast.

Trade suggestion

Sell Stop at 1314.00, Stop loss at 1319.00, Take profit at 1305.00



WTI



Fig: WTI H4 Technical Chart

After creating a number of lower lows, the crude price is coming up against a major zone of support at 43.30 once again. This level has seen the price consistently reverse higher since mid-August. The price action has broken through the two MA's from above, and both MA's placed above the price action are exerting significant pressure. However, as the RSI has neared the oversold zone, and upcoming bounce-back could be expected.

Trade suggestion

Buy Limit at 43.30, Stop loss at 42.40, Take profit at 44.10



EURO50



Fig: Euro Stoxx 50 H4 Technical Chart

The Euro Stoxx 50 Index created a small gap down on the market open and is paring yesterday’s gains. The index failed to breach the support at 2948.00 yet again. The two MAs are currently placed above the price action which is supporting the downtrend, after prices broke through both MA's from above, earlier in the month. However, in case bears reign in the market today, the support level at 2948.00 still seems a challenging level, that is unlikely to be breached.

Trade suggestion

Buy Limit at 2948.00, Stop loss at 2920.00, Take profit at 2972.40
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Daily Report on September 19, 2016 by Capital Street FX

Postby CSFX.Support » Mon Sep 19, 2016 9:53 am

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Asian stocks advanced on Monday following their biggest weekly drop in three months, as a rebound in crude prices bolstered risk appetite ahead of widely watched central bank policy meetings to be held later this week.

Oil prices climbed almost 2 percent on Monday from one-month lows, amid clashes in Libya, which disrupted supplies. In other supporting developments, Venezuela’s President Nicolas Maduro stated that OPEC and non-OPEC producers were close to reaching an output stabilization deal, and the deal could be announced this month to end a persistent supply glut which has resulted in a collapse in crude prices over the past two years.

China’s central bank was reported to have intervened in the currency markets. The cost to borrow the yuan overnight in Hong Kong surged the most since January, soaring by 15.7 percentage points to 23.7 percent. The People’s Bank of China was suspected to be squeezing liquidity to boost the exchange rate and discourage short positions on the local currency before the Federal Reserve’s review of monetary policy, later this week.

The British Pound continued to plummet at the start of the new week amidst rising rumors around the status of the U.K's membership in the single market after Britain leaves the EU. While UK Prime Minister Theresa May is expected to trigger the formal process of leaving the European Union as soon as January or February next year, the country’s politicians are split on whether the UK should try to retain a close link with the EU or break away entirely from the single market.

Japan’s markets are closed Monday for a holiday. China, Taiwan and South Korea have returned after a three-day break.



Technicals

GBPAUD

Fig: GBPAUD H4 Technical Chart

GBPAUD has been nose-diving from two-and-a-half-month highs at around 1.78007 and is heading towards a retest of the last low at 1.72600. As a result of the sharp decline, the MA20 has converged with the MA50 from above, and both MA's are placed above the price action. More downward pressure is expected to be exerted on the pair. However, a market that has already entered the oversold zone may soon witness a bounce-back.

Trade suggestion

Buy Stop at 1.72600, Take profit at 1.74100, Stop loss at 1.72020



EURCHF

Fig: EURCHF H4 Technical Chart

EURCHF has been trading in an ascending trading range with higher lows being created since the start of August. Meanwhile, the pair has continuously failed to knock out the 61.8% level. The ADX is currently under 20, suggesting that no clear trend is being formed in the market. However, with the stochastic lines pointing upwards, combined with the fact that the market has just successfully bounced back after testing the support trendline, EURCHF is forecast to re-attempt a test of the 61.8% resistance.

Trade suggestion

Buy Stop at 1.09450, Take profit at 1.09770, Stop loss at 1.09190



AUDUSD

Fig: AUDUSD H1 Technical Chart

AUDUSD has successfully broken through the resistance at the 38.2% retracement level at 0.75255 and at the same time is on the brink of falling into the oversold area. The pair was trading sideways in Asian trading hours following a strong rise. As the 38.2% level is expected to turn into a new support zone, along with with two MAs placed below the price action, the pair is anticipated to continue its climb.

Trade suggestion

Buy Stop at 0.75450, Take profit at 0.75660, Stop loss at 0.75200



SILVER

Fig: SILVER H1 Technical Chart

Silver has entered a period of consolidation after soaring decisively from the lows at around 18.765 to near the upper boundary of the price range at 19.200. From the stochastic chart, the %K line has crossed over the %D line from above in the overbought territory. Some corrective moves may be witnessed before the metal attempts to resume its rally.

Trade suggestion

Buy Stop at 19.130, Take profit at 19.365, Stop loss at 19.000



COPPER

Fig: Copper H4 Technical Chart

Copper retreated from nearly one-month highs at 2.1668 and has broken below the MA20 at 2.138 from above, signaling a reversal into downtrend. A Near-term target could be around the 50% Fibonacci retracement at 2.1320. On the stochastic charts, the %K line and %D line have dipped to below 50 and are heading towards the oversold zone.

Trade suggestion

Sell Stop at 2.1425, Take profit at 2.1320, Stop loss at 2.1700



SP500

Fig: SP500 H1 Technical Chart

Cautious sentiment ahead of the central bank meetings can be witnessed clearly on the SP500 index chart with lower highs and higher lows. The market does not have a clearly defined direction currently. The futures index opened the Monday session with a wide gap up and broke out of the recent trading range. Support for the up-move are coming from the two MAs placed below the price action and a rising RSI.

Trade suggestion

Buy Stop at 2148.00, Take profit at 2162.90, Stop loss at 2135.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Daily Market Research by Capital Street FX

Postby CSFX.Support » Mon Sep 19, 2016 6:14 pm

Investors Fleeing From Crude Even As Supply Controls Look Likely – Whats The Mystery?

Crude oil started the new week in positive territory after the clashes in Libya eased concerns over a global supply surplus amidst mounting signs that major oil producers are close to an output capping deal. However in a strange twist, oil investors are moving towards the sidelines as the meeting between OPEC and non-OPEC nations to discuss the freeze agreement draws closer.

Fighting between forces loyal to east-based military commander Khalifa Haftar and the local Petroleum Facilities Guard unit at the port of Ras Lanuf forced the tanker Seadelta to suspend the loading of 781,000 barrels of oil for shipment to Italy. Clashes in Libya have halted the loading of the first oil shipment from the port of Ras Lanuf since 2014, and turned a country which had pumped 1.6 million barrels per day into the second-lowest producer in the OPEC with an output of only 260,000 barrels a day in August.

Speaking at the end of a summit of the Non-Aligned Movement on Margarita Island on Sunday, Venezuelan President Nicolas Maduro stated that a deal to stabilize the oil market could be announced as soon as this month.

Iran’s President Hassan Rouhani, speaking on the sidelines of the same conference, said “Tehran welcomes any move aimed at market stability” but did not forget to mention the the words “fairness” and “fair quota” for all oil producers. OPEC’s third-largest producer has been ramping up its output after the sanctions imposed by the West were lifted in January, and is bargaining with OPEC on possible exemptions from output limits.

According to Algeria’s state news agency APS, OPEC Secretary-General Mohammed Barkindo said he was optimistic about the meeting that is to be held on Sept. 26-28, and OPEC may convene an extraordinary formal meeting if oil ministers reach a consensus on oil markets at the informal gathering on the sidelines of a conference of the International Energy Forum later this month.

Ahead of the meeting, speculators trimmed their positions on both short and long futures contracts. According to the Commodity Futures Trading Commission, wagers on falling West Texas Intermediate crude prices fell by 29,195 contracts to 101,079 contracts during the week ended Sept. 13. Long positions declined by 1.5%, bringing the net-long position 14 percent higher but reducing the total number of longs and shorts , also known as the Open Interest, to the lowest level since July.


WTI crude has bounced back from two-month lows at 43.00 in early trading today. The bounce back follows a decline that took away 5% of the crude value. There does not seem to be any concrete sign that confirms or signals a reversal into an uptrend. Both MAs are currently placed above the price chart, not to mention the fact that the 20-day MA has crossed the long-term MA50 from above. RSI also remains in bearish territory and is not even close to the neutral 50 line. Thus, the current rally may be limited.

Trade suggestion

Buy Stop at 43.70, Take profit at 44.50, Stop loss at 42.65
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Re: Daily Market Research by Capital Street FX

Postby CSFX.Support » Mon Sep 19, 2016 6:19 pm

AUD/NZD signal

FromGMT 15:35 19/09/2016
TillGMT 21:00 19/09/2016

Buy at 1.03340
Take profit at 1.03670
Stop loss at 1.02900
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Gold Signal by Capital Street FX

Postby CSFX.Support » Mon Sep 19, 2016 6:23 pm

Gold Advances On Weak Dollar – Funds Liquidating Longs En-Masse – Eyes On FOMC/BOJ


European session. The yellow metal trimmed earlier gains, retreating to around $1315.00 per ounce troy in the wake of the fact that hedge funds were reported to have reduced their long exposure to bullion by the most in more than three months, as they begin to doubt a continuation of the recent post-Brexit gold rally.

According to Commodity Futures Trading Commission data released last Friday, the net-long position in gold futures and options dropped by 11 percent to 248,858 contracts for the week ended Sept. 13. This is the biggest decline since the week ended May 24.

The decline in gold holdings can be explained by cautious sentiment among investors ahead of central bank meetings by the U.S Federal Reserve and the Bank of Japan later this week. Gold is expected to keep moving in a sideways to ascending fashion within a narrow range till the market is able to resolve its direction upwards/downwards, after the FOMC/BOJ meetings.

Trade suggestion

Buy Limit at 1313.00, Stop loss at 1310.00, Take profit at 1317.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Daily Report on September 20, 2016 by Capital Street FX

Postby CSFX.Support » Tue Sep 20, 2016 10:09 am

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Daily Report on September 20, 2016

Market Cautious Ahead Of FED, BOJ - Oil under Pressure

Asian stocks hovered near one-week highs on Tuesday as investors were nervously waiting for the Bank of Japan and the U.S Federal Reserve’s policy decisions tomorrow. U.S equities closed lower overnight after paring earlier gains. The S&P500 inched lower to 2,139.12, the Dow Jones fell 0.02 percent to 18,120.17 and the Nasdaq Composite dropped 0.18 percent to 5,235.03.

Investors are also keeping an eye out for the first debate of the U.S. presidential election which is scheduled for next Monday. According to market sources, traders are “in a cycle in the market where political uncertainty and economic uncertainty are just so high that investors are taking advantage of any move up to sell and any selloff to buy. As a result we’re stuck in a trading range."

Confidence among U.S. Home builders surged to an 11-month high in September, according to data released on Monday from the National Association of Home Builders/Wells Fargo. The gauge for builder sentiment increased to 65 from a downwardly revised reading of 59 in July, indicating an improving housing market. In its monthly report, NAHB noted that builder sentiment is being bolstered by the presence of “more serious buyers.”

Oil prices tumbled today after Venezuela’s Oil Minister Eulogio Del Pino stated on Monday that global crude supplies needed to fall by 10 percent to match consumption levels, which means producers will need to cut their output by 9.4 million barrels per day in order to resolve the oversupply situation.



Technicals

NZDUSD

Fig: NZDUSD H4 Technical Chart

NZDUSD is attempting to escape the current sideways trading range from 0.72500 to 0.73150 after a number of failed attempts. The pair fell back into this price range after breaking below the ascending channel. The RSI index has surpassed the 50 threshold, suggesting moves to the upside. The price has just broken above both the MA's and is attempting to retest the lower boundary of the ascending channel. Still, the resistance at 0.73433 should be watched as a level at which the pair may possibly fail and reverse.

Trade suggestion

Sell Limit at 0.73433, Take profit at 0.73150, Stop loss at 0.73700



EURUSD

Fig: EURUSD H4 Technical Chart

EURUSD extended its decline after peaking just above the 38.3% retracement at 1.11894. A weak bull failed to sustain the up moves and had to let go of its strength. The last three bearish candles with long upper shadows indicate a strong bearish sentiment in the market that depresses the price lower whenever it tends to rise. Both the MA's are placed above the price action and the RSI is well below the neutral threshold at 50. With the bearish sentiment reigning in the market, EURUSD is expected to retest the low at 1.11500

Trade suggestion

Sell Stop at 1.11700, Take profit at 1.11500, Stop loss at 1.11920



EURNZD

Fig: EURNZD H4 Technical Chart

EURNZD has been on a slide and may continue to fall further. The short-term MA20 has just converged with the long-term MA50 from above, and the price action broke below both the MA's from above more than a week ago and continues to head low. This indicates that the downtrend is set to extend further. However, RSI has neared the oversold zone, and the market is approaching an important support level at 1.52110. The market may witness a short term corrective pullback near this level.

Trade suggestion

Sell Stop at 1.52490, Take profit at 1.52110, Stop loss at 1.52910



GOLD

Fig: GOLD H4 Technical Chart

Gold is currently swinging between gains and losses around the level 1315.00 but has been in a downtrend in general. The precious metal has been being constrained under the 20-period moving averages for a while and it seems hard for the price to make a breakout currently amid cautious sentiment on the market. The MA50 has also turned lower and with both MA's placed above the price action and a lacklustre RSI, the market looks to be lacking any momentum at the moment.

Trade suggestion

Sell Stop at 1315.00, Take profit at 1312.00, Stop loss at 1318.40



BRENT

Fig: BRENT H4 Technical Chart

Brent crude once again collapsed from the 23.6% Fibonacci level at 46.74 and fell back under the MA20. The steep drop has pushed the market into the oversold zone and a brief period of the market consolidating sideways to upwards on short covering may last until the crude resumes its slide. With both MA's placed above the price action and the stochastics not indicating an end to down-move just yet, the market may continue moving lower.

Trade suggestion

Sell Stop at 45.70, Take profit at 45.30, Stop loss at 46.30



NASDAQ

Fig: NASDAQ H4 Technical Chart

NASDAQ100 index could not resist the pressure of the record high at 4843.89, plummeting decisively to last Friday's low at around 4790.30. The slide only slowed down after the prices hit the MA20 and bounced back. The ADX index has fallen back below 20, showing that no clear trend is being formed in the market as yet. The short and long term MA's are still placed below the price action providing support to the market. However the market seems to be getting top heavy near the highs.

Trade suggestion

Buy Limit at 4790.30, Take profit at 4815.20, Stop loss at 4769.00
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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GBP/AUD signal by Capital Street FX

Postby CSFX.Support » Tue Sep 20, 2016 7:18 pm

GBP/AUD signal

From GMT 11:30 20/09/2016
Till GMT 21:00 20/09/2016

Sell at 1.71800
Take profit at 1.71310
Stop loss at 1.21610
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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Silver Market Outlook by Capital Street FX

Postby CSFX.Support » Tue Sep 20, 2016 7:24 pm

Image

Will A Supply Deficit Power Silver Higher Post Central Bank Meetings?

Silver inched higher in European trading hours on Tuesday, extending yesterday’s gains after two consecutive weeks of closing in the red. Year to date, the grey metal has outperformed gold, oil and many other commodities thanks to a softening dollar, highly volatile markets and growing global demand.

There is only one day until the U.S Federal Reserve and the Bank of Japan announce their rate decisions and publish their economic assessments. While the Fed is widely expected to leave interest rates unchanged, the BOJ remains a mystery when it comes to which stimulus measure will be deployed. Possible options not only include cutting rates further into negative territory, but also buying more bonds and even maintaining current policies as is. All options will be taken into consideration at this week’s meeting. Whatever the outcomes may be, U.S and Japanese economies will continue to remain under accommodative monetary policies, echoing the general tone of policy easing all over the world.

Artificially low interest rates, disappointing economic indicators and political uncertainty (including the Brexit aftermath and upcoming U.S presidential elections in November) have caused investors to flock into safe haven assets such as silver and gold.

In general, silver prices often move in the same direction as gold prices but due to smaller market volume, silver tends to be the more volatile precious metal. Additionally, while gold is a purely monetary instrument and used for investing purposes mostly, silver demand is also derived from industrial applications.

“The World Silver Survey 2016,” an annual report published by The Silver Institute published in May said that the silver market in 2015 witnessed a physical deficit of roughly 130 million ounces, as demand increased by 39 million ounces to 1.17 billion ounces, outpacing 1.04 billion ounces of total supply. 2015 represents the third consecutive year of deficits and marks the second-largest deficit year since 2008.

High demand was driven by higher retail investment, jewelry and silverware fabrication and solar and demand for ethylene oxide catalyst. The report noted that demand for silver in solar panels grew by 23% on a yearly basis to 77.6 million ounces, demand by investors for bars and coins surged by more than 56 million ounces to 292.3 million ounces, while demand from the jewelry and silverware industries increased for the third consecutive year and hit a fresh record high of 226.5 million ounces.

According to a report published in August by Capital Gold Group, demand for silver used in solar panel manufacturing will “sky-rocket in the next five years” as industrial economies such as US, Japan, Germany and China try to bolster their green credentials by shifting from burning fossil fuels to using renewable energies to produce electricity.

Against the background that silver demand is increasing, the supply side seems subdued. Around three quarters of the world’s silver output is a by-product of mining for other metals. Therefore, cuts in capital expenditure and the closure of zinc, lead and copper mines over the last two years due to more stringent environmental policies in China and aging mines in Australia and production cutbacks by the biggest mining companies have effectively driven down the supply of silver.


Silver has been moving sideways for nearly two weeks between the resistance at the 23.8% retracement level at 19.365 and the support at 18.765. As a result, the ADX index has ticked lower below 20, suggesting cautiousness in the market that is keeping both sellers and buyers on the sidelines. The price action is trading very close to the MA’s and the MA’s themselves are tied very close together. Further the RSI is also crawling very close to the neutral level. All of this indicates a market that is range bound for the moment.The metal is expected to continue this current consolidation period until a breakout stemming from the fundamental side, coupled with cues from related markets such as gold and the US Dollar define a new direction.

Trade suggestion

Buy Stop at 19.200, Take profit at 19.370, Stop loss at 18.940
Benefit from 0 Pips Spreads, 200% Bonus, 1:1000 Leverage, 100% Risk Free
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