Silver prices have just breached last week’s low of $14.70 following somewhat more ‘hawkish’ than expected comments from the Chicago Fed’s CEO, Charles L. Evans.
The President of the Federal Reserve Bank of Chicago, he tends to not be in such a rush to hike rates compared with several of his colleagues and today came out stating that he is not “predisposed against a December liftoff”, whilst also saying “the FOMC has gotten closer to lift off”. This has triggered Dollar buying and subsequently lower silver prices in today’s session.
Levels to watch
Scalpers will probably use the $14.80 high as a base for short positions aiming for the psychological level of $14.50. We note that the October low is at $14.38 and prices will probably find some support as we reach this level. Scalpers will also probably book profits as we near this level.
Traders with a slightly longer term trading horizon will probably use the NFP high of $15.10 as the trend defining level. These traders are probably waiting for a pullback to the 14.83-14.89 range and see such an event as an opportunity to add to short positions.
The reason why they would not use the scalpers high of $14.80 is that it’s a weaker resistance level, and therefore not a stable enough platform for most traders to trade on.
Silver Prices Slip Below Support and May Trigger Further Losses
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst
Alejandro Zambrano, azambrano@dailyfx.com | Twitter: @AlexFX00
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