News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
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
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • US Treasury Yields: 2-Year: 0.147% 3-Year: 0.193% 5-Year: 0.349% 7-Year: 0.577% 10-Year: 0.814% 30-Year: 1.622% $TNX
  • The USD/MXN has broken below a key pivot zone but the follow-though looks a bit tired here. Get your $USDMXN market update from @MBForex here:https://t.co/mCa70wzCfz https://t.co/dyL8MlqXj7
  • RT @DailyFX: Can big tech post another miracle earnings season? Find out from @PeterHanksFX here: https://t.co/8RGba8tB8P https://t.co/tQZQ…
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.70% Gold: 0.95% Oil - US Crude: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pdcpeF9zbc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in EUR/USD are at opposite extremes with 73.13%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dqXvVj6gcX
  • Fed Beige Book: - Districts saw modest price increases since last report - Food, autos, and appliances increased significantly in price - Firms continue to take on additional costs related to Covid, including ppe and technology to work from home $SPX $NDX $DXY
  • Fed Beige Book: - Economic output continued to increase across all Fed Districts at a slight to moderate pace - Manufacturing activity increased at a moderate pace in general - Consumer spending growth continues to be positive $DXY
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.05% Germany 30: 0.05% France 40: -0.11% FTSE 100: -0.12% Wall Street: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qRmsVvTyG6
  • Heads Up:🇺🇸 Fed Beige Book due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-21
  • Senate Democrats have the votes required to block GOP on aid bill $DXY $SPX
Silver Prices Tech Update: Triangulating Below Resistance

Silver Prices Tech Update: Triangulating Below Resistance

2016-10-13 11:08:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Silver prices still failing to climb above confluence of resistance
  • Short-term triangle suggests a move is coming
  • Precious metals holding up past couple of sessions despite dollar strength, what to make of it; not much, yet

In the past couple of posts, we have been discussing the importance of watching how silver prices (and gold) react following the late Sep, early Oct decline. The retracement so far has been capped by the upper 17s, an area we’ve put focus on as key resistance given the confluence of technical events (Jan trend-line; peaks back to May ’15; lower multi-month parallel).

Silver: Daily

Silver Prices Tech Update: Triangulating Below Resistance

Created with Tradingview

Pulling in closer, on the hourly chart, price action is coiling itself into a tightly formed triangle. How it breaks from here will shape our short-term trading plan. The direction of the trend is down, making the likelihood the pattern will resolve to the down-side higher than the prospect of seeing an upside break. However, as per usual, because these patterns are a signal of an imminent expansion in volatility and can break in either direction, we need to wait for the trigger above or below the intersecting trend-lines.

A break lower will bring the prior low at 17.12 into play, and a drop below there will put silver into an air pocket with no visible price support until around the 16 line.

If a top-side break unfolds, silver will face resistance again in the 17.80s, but could run a bit higher into the 18s before the previously mentioned confluence of resistance is hurdled. Even then, silver will still be poorly postured from a trend standpoint.

Silver: Hourly

Silver Prices Tech Update: Triangulating Below Resistance

Created with Tradingview

The US dollar (DXY) has continued to run following its strong break above a 10-month trend-line, moving to a 7-month high in the past couple of sessions. Precious metals have held up, though, despite downward pressure by the dollar. The 21-day correlation between silver and the DXY is at a strongly negative 84%, but correlation doesn’t account for magnitude of price movements between the two, only their directional relationship. So the question: Is this a sign of a relative strength set to lead to a rebound on the first hint of dollar weakness, or simply a matter of short-term exhaustion in silver where for a moment it is living in its own little bubble? It’s important not to get overly caught up in correlations from day-to-day, but worth noting should something else point to a breakdown in the relationship.

For more on the dollar/silver relationship, see Tuesday's piece: "Silver Prices Cooling Off, Dollar Heating Up".

Back to the triangle formation...

To make things simple,we will simply go with the flow of the break. If silver breaks lower, then the bias remains pointed firmly lower. If it breaks out to the upside we will run with that, but will tread more cautiously with a long given the staunch resistance not far above.

Our Q4 forecasts are out for FX, commodities, and equity indices; you can check them out in our free trading guides section. There are other helpful guides in there as well.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES