Silver Prices Turned Higher, FOMC on Tap
- Silver prices turned bullish following yesterday’s lower-than-anticipated Durable Goods Orders and Consumer Confidence reports.
- FOMC rate decision could swirl silver prices today, traders are looking for clues of a June rate hike.
- Our forecasts for Q2 2016 are now live on the site. Download them for free.
Yesterday, silver prices took a leap higher and breached the narrow range of $16.76 and $17.13, a range which had kept the price trapped in recent days. Following the break to the range, the price reached the April 22 high of $17.37, a level we had highlighted as resistance in yesterday’s update.
The motivator behind the rise of Silver prices was the outcomes of Durable Goods Orders and Consumer Confidence, which failed to meet their Bloomberg News projected outcome.
The next resistance level for silver prices is the psychological level of $17.50, followed by last week’s high of $17.73.
The short-term trend is bullish, as the April 21 low of $16.76 is the most recent swing low and is a higher low than the prior swing low of $16.13 (formed on April 18). A short-term support level is the April 25 high of $17.13, which is the same level that had previously capped the price.
Today’s FOMC Rate Decision could turn today’s trading session into a volatile one. Per the Fed Funds Futures, markets are predicting a near to zero probability of a rate hike.
Instead, the focus will be on the language of the rate meeting statement. Traders are looking for hints of the Fed leaning towards a June rise. If it indeed provides clues of this happening then it could be a game changer as the Fed Funds Futures gives a low 21.6% probability of a June rate hike happening.
For interesting setups pre-FOMC, see Webinar: Price Action Setups Pre-FOMC by James Stanley, Currency Analyst.
Silver Price | CFD: 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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