Silver Prices Are Challenging Their Yearly High
- Silver prices have maintained gains following a soft U.S. Dollar.
- Price is trading near its March high of $16.16.
- U.S. NFIB Small Business Optimism Index printed 92.6 vs. the Bloomberg News projection of 93.5, with only the U.S. Import Price Index being on deck.
Today, silver prices have gained 0.56% at the time of writing as the demand for the USD remains lackluster. The USD is lower against most of its G10 peers in today’s session, with the exception of the Japanese Yen.
The gains today follow even greater gains yesterday, when the price of silver shot up by 3.6%. The rise here can also be attributed to a softer Dollar.
From a technical point of view, the gain was motivated by the end of the short-term trend. The downtrend, which had been in place since March 18, subsequently ended following a price breach to what was at that time the most recent swing high of $15.55.
The end of the downtrend exposed the March 21 low of $15.72 and the March 22 high of $15.93, both of which were levels highlighted in yesterday’s update.
Going forward, the next resistance levels in play are the March 18 high of $16.16, followed by the October 16 high of $16.23 and the November 10 high of $16.38
Potential support levels are yesterday’s breakout of $15.55, followed by last Thursday’s low of $15.15. Strong support and the last major low is that of $14.92 on April 4.
With the publication of the U.S. NFIB Small Business Optimism Index, which previously printed 92.6 vs. the Bloomberg News projection of 93.5, only U.S. Import Price Index is on deck.
The U.S. Import Price Index is expected to have declined by 4.8% YoY from -6.1% in February according to a Bloomberg Survey.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.