Talking Points
- Silver prices gain following demands for safe haven assets.
- The current rise is corrective in nature given that the overall trend is bearish below the March 31 high of $15.56.
- Economists project that the ISM Non-Manufacturing sector will rise to 54.1 from 53.4.
Silver prices (FXCM: XAG/USD) are higher by 1.55% today as it appears that the softer equity markets have triggered a demand for safe haven assets such as Gold and Silver.
The current rise amounts to a 50% correction to the decline from the March 31 high of $15.56 to the April 1 low of $14.81. The bulk of this decline occurred following the U.S. NFP publication last Friday.
From a technical point of view, the current rise is seen as corrective given that the overall trend is downward below the March 31 swing high of $15.56.
The trend is bearish as the March 31 swing high of $15.56 is lower than the prior swing high of $16.03, which was formed on March 22.
Support levels are currently at last week’s low of $14.81 followed by the March 1 low of $14.75 and February 29 low of $14.64.
This afternoon, we are looking towards U.S. Trade Balance and ISM Non-Manufacturing reports, with the latter likely to grab most of the attention given that it provides an insight into the important U.S. service sector. Economists predict that the ISM Non-Manufacturing sector will rise to 54.1 from 53.4. Final estimates of Markit U.S. Services are also on deck. See our economic calendar for consensus estimates.
Our forecasts for Q2 2016 are now live on the site. Download them for free.
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
