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
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
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
USD/JPY
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
More View more
Real Time News
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/xncree8XaW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/gGOU1RVQzq
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wrI29FTN41
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/UzzC1bGzRJ
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/46bdHdOmOV
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/6FokpDbL65
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/TwrOBFgIwj
  • Gold prices were crushed this week as yields continued to climb. But with a big spot of support coming in, can buyers bring a bounce ahead of NFP? Get your market update from @JStanleyFX here: https://t.co/E1TTXVJGUm https://t.co/pD4TeAY3ZP
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/PiLYJDVvtY
Silver Price Action Contraction to Lead to a Move Soon

Silver Price Action Contraction to Lead to a Move Soon

Paul Robinson, Strategist

What’s inside:

  • Silver prices gaining some strength versus dollar, but it may not matter
  • Stiff resistance up to ~18 is proving difficult for the metal
  • A triangle is still developing, waiting on the break

The last time we discussed silver prices, on Friday, we took a look at the inverse correlation between the metal and the dollar. This is what we had to say:

“The growing ‘strength’ in precious metals versus the dollar could morph into a rally should we see the dollar decline materially, or further dollar strength could undermine silver again and send it lower. Or, perhaps something altogether different.”

The US Dollar Index (DXY) has risen around 2% since 10/6 when silver stopped its decline from over 20, and during that time the metal has floated higher off support at 17.11. The dollar as of yesterday found sellers, putting in a key reversal bar. We may be on the verge of seeing a meaningful pullback develop, and if one does, can precious metals find a bid? Perhaps, perhaps not. As we said on Friday “something altogether different” could take shape. Meaning: The correlation between the two may not be very useful for purposes of determining the direction in silver.

In any event, whether the relationship between the dollar and precious metals becomes clear again or not, silver has its work cut out for it before it can trade above the upper end of resistance around 18. Silver is trading above the lower parallel running back to July, but horizontal resistance extending back to May 2015 and the underside of the broken January trend-line remain in the way, and continue to present as obstacles to overcome before momentum can carry silver higher.

With little happening, the triangle we pointed out the other day continues to develop. The contraction in price action is pointing towards a move to unfold soon. We will need to wait for the break before running with either side of the tape. A break lower will be in line with the path of least resistance and quickly put pressure on 17.11, where a break below this key level would open the door up for losses towards the 16 area. A break higher will likely prove difficult until silver can trade above resistance. In the event it does, we would look to the 8/29 low at 18.40 as the next level to achieve.

Silver: Daily

Silver Price Action Contraction to Lead to a Move Soon

Created with Tradingview

Check out our Q4 Forecasts and Trading Guides.

---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