Never miss a story from Alejandro Zambrano

Subscribe to recieve 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 Daily FX 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 you 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 Prices

  • Silver prices are consolidating below the February 12 high of $15.83, and may head higher on a break to the $15.83 high or after a pullback, which would offer a better risk/reward ratio for bullish traders.
  • For price to turn bearish, it will most likely need to break the March 3 low of $14.87.
  • Silver slid on the softer than expected Chinese Import/Export data, but has since then rebounded.
  • There are no key macro reports on tap today.

Silver prices are consolidating below the February 12 high of $15.83 and it’s fair to expect traders not to add to their bullish exposure until price trades to the $15.09 – $15.36 range, where the risk/reward ratio is better.

The alternative scenario is a breach to the February 12 high of $15.83, whereby resistance will leave the February high of $15.97 exposed, followed by the October 15, 2015 high of $16.23.

The bullish trend is also supported by gold prices trending higher and this is now suggesting that silver should be trading at $15.99, as long as gold trades at or above $1,275 per ounce. We have estimated this target with linear regression analysis using daily gold prices from the last six months as the sole explanatory variable.

For price to turn bearish, it will most likely need to break the March 3 low of $14.87.

Data published overnight showed Chinese Exports in U.S. Dollars declining by 25.4% YoY vs. the estimated 14.5% (Bloomberg poll), while Imports declined by 13.8% YoY vs. an expected 12%. Silver prices declined on the news, but have since recovered, which seems fair given that silver has a safe haven appeal to investors. There are no key macro reports on tap today.

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

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