Silver Prices are Treading Water Ahead of the NFP Announcement
Within a few minutes ahead of today’s U.S. Non-Farm Payrolls report (NFP), market participants are not trading Silver as volatility is expected to be high.
Working with the idea that a stronger than expected NFP outcome will boost the Dollar, I think it would be reasonable to expect a break below $14.91, with traders targeting $14.80 and $14.70 in case of an extension. This is also in line with the overall trend and with the idea that the FED will raise rates sooner rather than later.
If the NFP result fails to meet the 185K expected (Bloomberg News Survey), it would be natural to expect a break of $15.10. Traders would probably target a silver price of $15.20, as they scale back their expectations of a Fed rate hike. In the case that we break $15.20, we may reach $15.33.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst
Alejandro Zambrano, firstname.lastname@example.org | Twitter: @AlexFX00
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.