Silver Prices: Under Pressure Ahead of ADP and ISM Services
- Silver prices give back large parts of last week’s gains.
- Short-term resistance is today’s high of $17.45 and the very short-term trend is bearish below this level.
- A batch of US macroeconomic reports are on deck today and may have a big impact on silver prices
Silver prices were under pressure at the time of writing and had given back large parts of last week’s gains. If prices were to reach the $16.78 level then a complete reversal of last week’s gains would have occurred.
The losses to silver prices are on the heels of a stronger USD and the current decline is challenging the current uptrend of silver prices.
We note that the ability of prices to stabilize has been low. Price was, at the time of writing, trading at $17.20 with the next support level being the April 27 low of $17.03. Above the April 27 low of $17.03, the trend remains bullish as the April 27 low of $17.03 is a higher swing low in relation to the April 25 low of $16.78.
Short-term resistance is today’s high of $17.45 and this level is also the short-term trend defining level, as it is the most recent swing high of the short-term downtrend which started from the $18 level this Monday. The next resistance level beyond the $17.45 high is the May 3 high of $17.70 and is followed by this Monday’s high of $18.
A batch of U.S. macroeconomic reports are on deck today. One of session’s most important reports is the U.S. ADP Employment Change, which a Bloomberg News survey is projecting to print at 195k, a slightly lower amount compared with last month’s reading of 200k.
In relation to the importance and the ability to move the market, a key indicator is the ISM Non-Manufacturing Composite. It is key as it gives us a glimpse of the health of the U.S. service sector, a large part of which is attributable to U.S. first quarter GDP growth. A Bloomberg News economist poll projects a rise to 54.8 from 54.5.
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