News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
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
Bearish
Gold
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/RfUWJdNjzk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/EzdjTZEbx2
  • The Dow Jones, S&P 500 and AUD/USD could be at risk of extending losses as retail investors increase upside exposure. What are key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/ivQmFUTGdU https://t.co/KuIoM7g9E3
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/FBT1eSZdjF
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/LRL1iD3JDt
  • Even though the Australian Dollar lost some ground this week, support levels held. Bearish developments are brewing in $AUDUSD and $AUDJPY but remain unconfirmed. What else does #AUD face ahead technically? - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/24/Australian-Dollar-Technical-Forecast-AUDUSD-AUDJPY-EURAUD-GBPAUD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0gHyXW1vHh
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/9qcanKW0uT
  • Third wave? We haven’t beaten the first wave. Until the virus is under control, the US economy won’t be able to properly heal, plain & simple. The lack of a competent response saps courage. Defeat the virus, then get people back to work. In that order. https://t.co/8R8IyTZejM
  • The British Pound may fall if EU and UK negotiators fail to reach a consensus as the December 31 deadline nears. The third presidential debate is on deck, how might markets react? Find out from @ZabelinDimitri here:https://t.co/kDSYzBDA3t https://t.co/80xL2Hyat7
  • The #Fed b/s hit a record high USD ~7.18T this week! Been awhile since I last did an update so here it is! I smoothened out analysis by using 4W moving averages You can see how into summer #SP500 growth 👇 as the b/s 👇 Since then it flipped until recent fiscal talk jitters https://t.co/4AESBo99dl
Silver price skyrockets after finding support at $19.66

Silver price skyrockets after finding support at $19.66

2014-01-24 22:51:00
Research, Research Team
Share:

Main Points

  • Silver printed Higher Low and Higher High in previous wave
  • Growth in China, the largest consumer of silver, slowed down in last quarter
  • Price of white metal may surge up to 20.83, a triple confluence zone
  • Investors are cautious ahead of FOMC meeting later this month

Silver price XAG/USD was closed in negative territory around $19.75 per ounce on Wednesday however $19.66 support worked for white metal and we saw a sharp spike in price today.

Precious metal is being traded at $20.18 in the US morning session; immediate support is seen around $20.12-$20.00 where a number of moving averages are currently sitting in. A break below this support zone may target $19.80, 55 DMA, and then $19.66, 23.6% fib level.

silver_price_fomc_unemployment_body_Picture_2.png, Silver price skyrockets after finding support at $19.66

On upside, resistance may be noted at $20.30, 38% fib level ahead of $20.66, 100 DMA and then $20.83 to $20.97, 50 fib level and 200 DMA.

The white metal had posted Higher Low (HL) and Higher High (HH) in previous daily wave which is a perfect example of Bullish Trend according to typical swing pattern.

silver_price_fomc_unemployment_body_Picture_1.png, Silver price skyrockets after finding support at $19.66

Thus the ongoing rally in silver should halt around $20.80-$21.00 which is a triple confluence zone of moving averages and 50% fib level as shown in above chart. A rebound from 20.80-21.00 will print another Higher High (HH) thus signaling the continuity of bullish momentum.

So in light of above mentioned price action signals selling silver around $20.83 with a final target around 19.85 can be a good move, stop loss should be placed at $21.05.

Earlier this week we saw a rapid fall in bullion price after China’s last quarter growth remained below expectations, moreover industrial production also slowed down in Asia’s largest economy. China is the biggest consumer of precious metals, thus growth concerns about Asian nation kept gold and silver under pressure.

It is to be noted that moments ago the US labor department released figures about continuing jobless claims till Jan 11, the data was worse than expectations. Analysts had predicted 2.930 million claims this time around; however actual figure was 3.056 million. The report has fueled the bullish momentum in Silver.

It is also pertinent to mentioned here that the fate of Federal Reserve’s unprecedented asset purchase program is linked to performance in labor market. In December, the US central bank recognized recent improvement in labor market and consequently trimmed monthly purchases of bonds by $10 billion.

Earlier this month the US labor department said that jobless rate had reached 6.7% in December, a level which is very close to Fed forward guidance threshold. Due to concrete progress in employment sector during December, many analysts now believe that more trimming in monthly bond purchases is very likely in FOMC forthcoming meeting which is due to be held on 28-29 January.

Minutes from FOMC last meeting revealed very hawkish monetary policy stance in policymakers. More tapering in January will significantly increase selling pressure in Silver price because the value of US dollar is negatively correlated with stimulus.

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

DISCLOSURES