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Avoid Today’s Major Drama: Trade Silver

May 29, 2019
BY Emma Richards

Until recently, just about any trader would have told you that the major currency pairs are the ones to stick to if you want to avoid high-risk volatility. Sadly, that advice has become more trouble than it’s worth since Brexit and Trump’s trade wars hit the media. So if the majors are too hot to handle right now, where can a trader make high leverage trades in 2019? Keep reading to see why XAG stands out from the crowd.

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A major pain for traders

There are four major currency pairs, but when we take a look on the charts and check the international news reports, we see a highly volatile pattern that is causing modestly funded traders to be fearful. Here’s a list of the so-called stable currencies.

  • EURUSD: Euro vs. U.S. dollar
  • USDJPY: US dollar vs Japanese yen
  • GBPUSD: British pound vs. US dollar
  • USDCHF: US dollar vs Swiss franc


The euro is facing a battle on two fronts now that Trump is pointing his trade war guns at Europe. Threats of US tariffs on airlines and automotive exports may be the start of a battle that will only lead to further volatility. Add to that Putin’s alleged funding of right-wing parties in an attempt to destabilize the EU. With pressure from east and west and the fears of a crumbling union, you’ve got major euro volatility that can spring up when you least expect it.


Then there’s sterling. Brexit is all over the news these days and GBP has become one of the most unpredictable currencies of the year. Internal indecision from the UK government. The recently announced resignation of the British Prime Minister. An uncertain future. Forecasting GBP with technical and fundamental analysis isn’t as clear cut as most traders would like.


America is the center of the free market, but things don’t look so good for the US economy. With student debt higher than ever before and housing debt reaching recession levels, USD holders are starting to feel nervous. The trade wars continue, which is not advantageous for the US, and Trump seems focused on burning whatever international bridges his predecessors managed to build. USD is suffering, and there’s nothing in the coming weeks and months that will change that.

Both JPY and CHF continue to hold their status as safe haven currencies, but trading them against the big three requires constant monitoring to avoid premature Stop Loss and Take Profit activations. So what trading option can you consider as an alternative in the meantime?

Trade Silver for the silver lining

Three-month stability for XAG offers traders an escape from the recent volatility of major currencies.

XAG trades against most majors, but if you’re looking to escape the political drama, consider AUD as an option. XAGAUD shows a downward trend since the February high of 22.518, falling to the recent lows of 20.700. While this sounds like a lot, at no point in the last two months have the price swings exceeded 1.000. And with an almost mechanical and weekly high and low, silver offers a more stable option compared to the majors.

Trading XAG today

So you have stable patterns on the XAGAUD price charts and nothing fundamental on the horizon that could throw a spanner in the works and send prices off rhythm. The Aussies have avoided getting directly involved in the numerous international disputes so far. Moreover, they don’t have any major internal issues to resolve in the coming months. This means technical analysis might perform well in the absence of fundamental influences, making profit goals and Stop Loss settings relatively easy to forecast.

As always, FX News recommends that all traders do their own research and then compare their results against multiple indicators. When all sources of information are in harmony, then you can feel confident that your trade will end well. But don’t get overconfident! XAGAUD is an excellent trading opportunity right now, but the trading world is always fluctuating, and silver’s stability won’t last forever.

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Disclaimer: the publication of analysis is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience or current financial situation. Analysis is not prepared in accordance with legal requirements promoting independent investment research and Exness is not subject to any prohibition on dealing before the release of analytics. Readers should consider the possibility that they might incur losses. Exness is not liable for any losses incurred due to the use of analysis. Risk warning: CFDs are leveraged products. Trading them carries a high level of risk, so it is not appropriate for all investors. The value of investments can both increase and decrease and an investor may lose all of their invested capital. Under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from or relating to any transactions in CFDs. © 2008—2019, Exness

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