Silver Prices Remain Low After Yesterday’s Dramatic Plunge
- Silver price has softened by 5.3 percent since last week’s high of $16.16 and it has slid below the March 16 low of $15.22, but was not able to cleanly break the level.
- On a break to the March 16 low of $15.22, the $14.87 will be exposed.
- Action Packed Afternoon: Jobless claims, Durable Goods orders and PMI’s on deck.
The price of silver has softened by 5.3 percent since last week’s high of $16.16. The decline, which was fairly dramatic in relation to recent slides and contains a good amount of bearish momentum, was triggered by a stronger Dollar.
Price slid below the March 16 low of $15.22, but was not able to cleanly break that level. On price sliding below the $15.22 level, the bullish trend since the start of March would be over, as price would break a prior low. If this scenario plays out, the next support level which comes into view is the March 3 low of $14.87, followed by the February 29 low of $14.63.
Last week’s high of $16.16 is the closest significant high.
Action Packed Afternoon
Trading this afternoon will probably be dominated by demand and supply of the USD. Key reports like Jobless Claims, Durable Goods Orders and Markit U.S. Services PMI are on deck, and will most likely generate a reaction to the USD. Data beating expectations may strengthen the Federal Reserve’s case to raise rates and thereby boost the USD and soften Silver, while softer than expected outcomes may actually have the opposite effect.
For the estimates please see our economic calendar.
Silver Price | 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