Silver Price Eases Back on a Strong Dollar
- Silver prices remain bearish below last Friday’s high of $14.40.
- Silver may be pulled down by gold prices which are flirting with last week’s low
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Silver has eased from resistance and aggressive bearish traders are back in the green. The overall trend is bearish below last Friday’s high of $14.40.
The short-term bearish momentum is expected to pick up on a break to Wednesday’s low of $14.02. In this scenario, traders are expected to aim for the weekly low of $13.89 and then $13.80.
Gold prices are also lower today and are flirting with last week’s low. A successful break may trigger a decline to $1054 over the coming days. This will put silver prices at risk of reaching new yearly lows, given their correlation to gold prices.
There are no major data reports on tap this afternoon and I see no reason to change my bearish bias despite the slowdown in this downward trend. Firstly, the trend remains bearish, and secondly, there are no strong macro reasons to turn long, unless China decides to stabilize the supply glut across metals as was reported by Reuters earlier this week. I am also keeping an eye on the reaction to next week’s ECB rate meeting and the U.S. Non-Farm Payrolls on Friday December 4.
Suggested reading: Copper Rallied To Reports Of China’s Measures To Support Metals, While Weak Industrial Profits Sent Oil Lower
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.