Silver Prices Trade Sideways Ahead of Jobless Claims
- Silver prices have traded sideways over the last 24 hours as conflicting U.S. data reports leaves traders with no strong bias.
- Silver prices are short-term bearish below today’s high of $17.48 as it is the most recent swing high of the short-term downtrend which started from the $18 level this Monday.
- This afternoon, U.S. Jobless Claims may rise from 257k to 260k, as per a Bloomberg News Survey.
Silver prices have been trading sideways since yesterday, despite traders attempt to breach the downtrend in place since Monday of this week.
The move higher in silver prices following the publication of the ADP Employment Change (it printed 156k vs. the 200k expected) was not enough to spur a bullish trend. Higher than expected readings of U.S. Unit Labor Costs and the ISM Non-Manufacturing Index, countered the bullish impulse given to silver prices by the soft ADP report.
The higher Unit Labor Costs, which rose to 4.1% YoY from 3.3% is something that adds to the Fed’s case to hike rates, while the higher than expected ISM Non-Manufacturing Index hints that the U.S. Service Sector is doing better than anticipated.
Silver prices are short-term bearish below today’s high of $17.48 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 today’s high is the May 3 high of $17.70 and followed by this week’s high of $18.
Short-term support levels are yesterday’s lows of 17.15, followed by April 27 low of $17.03 and the April 25 low of $16.78.
This afternoon, U.S. Jobless Claims may rise from 257k to 260k as per a Bloomberg News Survey. A lower than expected reading hints at a better than expected U.S. labor market, while a higher than expected reading has the opposite effect. The report may affect the USD, which in turn affects silver prices.
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