Silver Prices Are Testing Last Week’s Low
- Silver prices are trapped between last week’s low and this week’s high. A breakout to this range may be enough to establish a new trend.
Silver prices are lower today on a stronger dollar following traders positioning themselves for tomorrow’s FOMC meeting.
Price is trapped between last week’s low of $15.16 and this week’s high of $15.83. On a breach to the lower limit, price may reach the March 3 low of $14.87 followed by the January 29 low of $14.63.
However, if last week’s low of $15.16 holds as a support, then price may recuperate the last 24 hours of losses and potentially reach the current weekly high of $15.83. On a successful breach to the $15.83 high, price may reach the February high of $15.97, followed by the October 15 high of $16.23.
U.S. Retail Sales declined by -0.1% MoM vs. the -0.2% projected by a Bloomberg news poll. While this is a better than expected outcome, the January figures were revised to -0.4% from +0.2% and may help to explain why silver prices have gained slightly following the news.
The Empire Manufacturing Index increased to 0.62 vs. the -10.50 expected. The U.S. NAHB Housing Market Index is on tap at 14:00 GMT and expected to rise to 59 (Bloomberg).
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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