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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:https://t.co/8hAhguZcEA https://t.co/kwtatozp3z
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/Yg6ecRZZNr https://t.co/9SdceNYUEK
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/imv2PnapzH
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/mmldxxEtsc
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/reMoYpqkQO
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
Silver Price: Adding To Losses On Higher Interest Rates

Silver Price: Adding To Losses On Higher Interest Rates

2015-11-02 15:39:00
Alejandro Zambrano, Market Analyst
Share:

Silver is lower by 1.04% in today’s session and we expect the price to drift lower as long as we trade below Friday’s high of $15.65. Long-term traders will be bearish below the October high of $16.20, near this level we find the 200-day moving average. We expect the price to reach $15.

U.S.Short-Term Yields Trade Higher, China PMI Is Being Ignored

The motivation for the latest down leg are the expectations of a Fed rate hike and as a consequence higher rates. As an example the U.S. 2-year-swap-rate is now yielding 0.85% from trading near 0.75% before the FOMC meeting. This makes it more rewarding to hold Dollars over silver.

The price of silver is also weighed down by ample supply across other metals, like copper and steel. This may change in the future as Chinese Caixin Mfg. data, published overnight, suggests the Chinese economic cycle may have reached a bottom. However, the market is ignoring this for now, something we think it’s fair given the high imbalances in the base-metal-markets.

U.S. ISM Manufacturing printed 50.1 vs. an expected outcome of 50. This is better than our own estimations of a drop below 50. We note that ‘New Orders’ improved, from 50.1 to 52.9, while ‘Customers’ Inventories’ declined to 51 from 54.5. This is a good and indicates some stabilization for the ISM by December. This is supporting U.S. yields for now, making the outlook for Silver bearish.

We also note that the ISM ‘Employment’ component declined to 47.6 from 50.5, which implies the manufacturing sector is losing jobs. However, the interest rates markets are ignoring this for now.

The trend remains bearish below the below the $15.65 high,and we may reach the psychological level of $15. Beyond this level $14.45 is the next support level.

XAG/USD: Short-Term Bearish Below $15.65

Silver Price: Adding To Losses On Higher Interest Rates

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

--- Written by Alejandro Zambrano, Market Analyst

To contact Alejandro Zambrano, e-mail azambrano@dailyfx.com

Follow him on Twitter at @AlexFX00

To be added to Alejandro’s e-mail distribution list, please fill out this form

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

DISCLOSURES