Never miss a story from Alejandro Zambrano

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Alejandro Zambrano

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points

  • Traders are unwilling to take sides and price trades sideways between this week’s low of $14.95 and this week’s high of $15.60.
  • This week’s macro data has been soft, but traders are not ready to lift price higher.
  • Data on tap: Jobless Claims and Durable Goods Orders.

See the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

When neither bearish nor bullish traders make money trading, it’s time to give that market a break. This is the case for silver, which generated a sell signal on Monday which subsequently failed, and then triggered a buy signal on Wednesday, which also turned out to be a loser.

Price is now trading sideways and flanked by this week’s low of $14.95 and this week’s high of $15.60. A break to this range is needed to better assess what’s next for silver. On a breach to the weekly high, price may reach the monthly high of $15.97, while a break to $14.95 may trigger a slide to the February low of $14.67.

The Macroeconomic Outlook is Short-term Bullish

From a macroeconomic perspective, the data reports of this week have been soft, with the latest disappointing report being yesterday’s U.S. Markit PMI Service, declining to 49.8 vs. the expected outcome of 53.5 (Bloomberg news survey). This may suggest a higher price for silver on haven flows, but traders have so far not been interested in boosting it.

This afternoon, the focus will be on Jobless Claims and Durable Goods Orders. The former is expected to rise from 262K to 270K (Bloomberg news projection), while the latter is expected to rise by 2.5% MoM. Better than expected figures may send silver prices lower as they may dampen safe haven flows and lift U.S. interest rates, while worse than expected outcomes may have the opposite effect.

Silver Prices | FXCM: XAG/USD

Please add a description for the image.

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

Struggling with Trading? Join a London Seminar