We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • BoE's Executive Director Hauser says negative rates won't happen in the near-term even if it decided it is right thing to do $GBP
  • 🇬🇷 GDP Growth Rate QoQ Actual: -1.6% Previous: -0.7% https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇬🇷 GDP Growth Rate YoY Actual: -0.9% Previous: 1% https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:🇬🇷 GDP Growth Rate QoQ due at 09:00 GMT (15min) Previous: -0.7% https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:🇬🇷 GDP Growth Rate YoY due at 09:00 GMT (15min) Previous: 1% https://www.dailyfx.com/economic-calendar#2020-06-04
  • Heads Up:💶 Retail Sales YoY due at 09:00 GMT (15min) Expected: -22.3% Previous: -9.2% https://www.dailyfx.com/economic-calendar#2020-06-04
  • 🇬🇧 Construction PMI Actual: 28.9 Expected: 29.7 Previous: 8.2 https://www.dailyfx.com/economic-calendar#2020-06-04
  • GBP/USD IG Client Sentiment: Our data shows traders are now at their least net-long GBP/USD since May 01 when GBP/USD traded near 1.25. A contrarian view of crowd sentiment points to GBP/USD strength. https://www.dailyfx.com/sentiment https://t.co/j8MKwlmxDg
  • While the medium-term risk remains weighted to the downside in gold, the recent price sell-off is approaching uptrend support and we’re looking for a reaction. Get your $XAUUSD technical analysis from @MBForex here:https://t.co/gqeVbpj4Hs https://t.co/fXGoaNZUwX
  • Heads Up:🇬🇧 Construction PMI due at 08:30 GMT (15min) Expected: 29.7 Previous: 8.2 https://www.dailyfx.com/economic-calendar#2020-06-04
Silver Prices: Lower by 9.11% Since May High

Silver Prices: Lower by 9.11% Since May High

2016-05-25 12:18:00
Alejandro Zambrano, Market Analyst
Share:

Talking Points

  • The trend remains bearish below the May 23 high of $16.43.
  • A near term resistance level is this morning’s high of $16.29, while the current support levels are yesterday’s low of $16.14, followed by the April 18 low of $16.09.
  • A Bloomberg News survey projects that the Markit U.S. Services PMI will rise to 53 from 52.8. If it does indeed gain, then it would be the third month of doing so for the index.

Silver prices drifted lower yesterday evening and reached a low of $16.14, in line with the short-term bearish trend, which has been in place over the last few days. The trend is now bearish below the May 23 high of $16.43, and the trend is bearish below this high given that it is a lower high in relation to the previous high of $16.63 formed on May 20. In a downtrend similar to the current, the norm is for price to drift lower, creating lower highs and lower lows, according to classical technical analysis.

A near term resistance level is this morning’s high of $16.29, while the current support levels are yesterday’s low of $16.14, followed by the April 18 low of $16.09.

Our forecasts for Q2 2016 are live on the site. Download them for free.

Silver Price | CFD: XAG/USD

Please add a description for the image.

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

The Markit U.S. Services PMI may rise to 53 from 52.8 according to a Bloomberg News survey. If the outcome were indeed as expected, then it would be a third month of gains for the index. On February 2016, the index reached a cyclical low of 49.7, but relative to the high of 61 in mid-2014, the index is at the lower end of the last few years range.

A better than expected outcome could be important for silver prices and the dollar going forward. This is due to the U.S. economy being dependent on a strong service sector following a faltering manufacturing sector and that such a turning soft may trigger a delay to the Federal Reserve’s plan to raise rates. It is this speculation of the Fed raising rates on June 15 coupled with the stronger dollar, which have been the primary drivers behind softer silver prices.

--- 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.

DISCLOSURES

News & Analysis at your fingertips.