We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • For Thursday's trading session we have: the RBA Financial Stability Review; UK GDP; Canadian employment; US consumer confidence (UMich for April) and the OPEC+ meeting. High profile event risk overriding liquidity fade into Good Friday?
  • $EURUSD Daily Pivot Points: S3: 1.0647 S2: 1.0762 S1: 1.0827 R1: 1.0941 R2: 1.0991 R3: 1.1106 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • #Gold prices rallied by more than 7.7% from the April 1st low into yesterday’s. high. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/M9QeP4a5QH https://t.co/xc847ElRxe
  • RT @hmeisler: RUT green 3 straight. Hasn't gone 4 since early Feb.
  • $USDJPY Daily Pivot Points: S3: 107.91 S2: 108.39 S1: 108.58 R1: 109.05 R2: 109.34 R3: 109.81 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @LizAnnSonders: Small- & medium-sized firms constitute 44% of GDP & nearly half of private payrolls; which doesn’t bode well for economy…
  • RT @realDonaldTrump: White House news conference at 5:30 P.M. Eastern. Thank you!
  • Precious Metals Update: #Gold 1646.35 (-0.08%), #Aluminum 1477.50 (+0.37%), and #Copper 5040.00 (+3.19%) [delayed]
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.97% 🇳🇿NZD: 0.54% 🇬🇧GBP: 0.40% 🇨🇦CAD: -0.10% 🇨🇭CHF: -0.29% 🇪🇺EUR: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/CwWpE451WZ
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.72% Gold: -0.11% Silver: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NypvhI3fFm
Silver “Bullish” in short term, Eyes FOMC January meeting.

Silver “Bullish” in short term, Eyes FOMC January meeting.

2014-01-15 03:26:00
Usman Ahmed,
Share:

Silver on Friday closed at $20.13 / ounce just ahead of a key resistance level after a rapid surge in the US session amid poor non-farm payrolls data. The metal is likely to face immediate resistance at $20.29 which is 38.2% fib level and then $20.82, a very crucial 50% fib level and 100 DMA.

silver_price_body_Picture_4.png, Silver “Bullish” in short term, Eyes FOMC January meeting.

On downside support is seen around $19.63 a break and daily close below this level would be targeting $18.62, low of 31st Dec 2013.

Swing analysis shows that Silver is poised for Higher High after printing Higher Low on daily chart, have a look at given below chart;

silver_price_body_Picture_3.png, Silver “Bullish” in short term, Eyes FOMC January meeting.

If the metal breaks $20.32, swing high of previous upward wave, it would confirm bullish reversal targeting $20.82 or even above that level.

If we look at a little broader picture, a double bottom pattern is obvious on weekly chart as shown below;

silver_price_body_Picture_2.png, Silver “Bullish” in short term, Eyes FOMC January meeting.

The neckline of this double bottom price pattern is at $25.08 that needs to be broken in order to print further upward price movement towards $32.00, near term fundamentals however do not justify this scenario. The completion of this double bottom pattern could only be possible if Federal Reserve’s policy of scaling back stimulus yields negative outcomes and affects US growth or some other change in fundamentals that significantly boosts silver’s demand.

If we apply the Elliott Wave Theory on recent price movement in XAG/USD, we would get something like this;

silver_price_body_Picture_1.png, Silver “Bullish” in short term, Eyes FOMC January meeting.

Yes the price is currently in the completion phase of last correction wave as per EW pattern and a reversal is likely from current levels.

If we look at the above monthly chart, the price has also formed bullish ABCD pattern which also indicates reversal from existing levels. So technically we have many reasons to have a bullish bias on silver in short-term.

Labor department on Friday said that jobless rate in the US has slumped to 6.7% that is very near to FOMC forward guidance 6.5% target. Government employment report, however, revealed that the economy could only create 74,000 new jobs, beating the median projection of 197,000 to a great extent. It is pertinent that this worst that expected non-farm payrolls figure can be an outcome of bad weather as many economists believe.

Federal Open Market Committee (FOMC) meeting is scheduled on January 29th. Keeping in view recent ADP report which was very positive, far better than expected jobless rate in December and pace of growth in the third quarter, the committee members may go for yet another tapering in asset purchase program as minutes from their December meeting were very hawkish. If it happens, Silver may once again come under selling pressure challenging double bottom support and eying new multi-year lows.

In conclusion I would say that bias is bullish in short term, however FOMC meeting at the end of January shall be of great interest. More tapering in January would bring precious metal under selling pressure. On the other hand if FOMC decides to abstain from back to back tapering, the pace of ongoing bullish momentum in Silver would definitely increase and the metal may re-visit $23 zone in February.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.