Silver Gets A Bump Higher Following A Soft Dollar
- Silver prices remain in a bullish trend after carving out a low of $15.16.
- Last week’s high of $15.83 is capping price, but a break to this level may place the February high of $15.97 in focus.
Silver managed indeed to carve out a low near $15.16, which made sense given that the overall trend was bullish and the risk/reward ratio supported a bullish view at the time. See ‘Silver Prices Give Back Gains, But The Trend Remains Bullish’.
However, can traders trust the new swing low of $15.16? At this stage it may be a bit too early to assume the low will hold as price has been trading sideways since February 11. The rationale is that in sideways trading prices tend to have less respect for support and resistance, which may trigger false breaks, hence caution is warranted.
On a break to the new swing low of $15.16 prices may reach the next low in line, which is the March 3 low of $14.87.
On a break to last week’s high of $15.83, the February high of $15.97 may come into focus, followed by the October 15 high of $16.23.
Silver Prices | FXCM: XAG/USD
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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