Silver is Testing Trendline

26 Jan

XAGUSD tested the trendline couple of times and finally break the short term uptrend channel. Now if the orange line continue to hold ground a possible bearish correction might be due. Gold probably follow silver if that happens. Stong GDP and PMI data support this idea. Next week JOLTS and Payrolls report will also key for the direction. I think the early rate cut pricing in the market is a bit too optimistic.
My bet is on the short side for now. But the overall outlook is kind of a wedge formaiton so I wont stay in case of a breakout and look for oppurtunites to reverse my short position below 22.