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
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
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
Mixed
More View more
Real Time News
  • $NOK slips on the release given market pricing had been for a signal of a slightly earlier hike than previously forecast https://t.co/iQcZ70pCII
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.5 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Norges Bank - The policy rate forecast is little changed since June 2020 Monetary Policy Report and implies a rate at the current level over the next couple of years, followed by a gradual rise as activity approaches a more normal level $NOK
  • 🇳🇴 Norges Bank Interest Rate Decision Actual: 0% Expected: 0% Previous: 0% https://www.dailyfx.com/economic-calendar#2020-09-24
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.6 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/HbVXBTslrS
  • SNB will detail FX interventions on a quarterly basis from September 30
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.66%, while traders in EUR/GBP are at opposite extremes with 64.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JxqLeQGhcS
  • Heads Up:🇳🇴 Norges Bank Monetary Policy Report due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
  • Heads Up:🇳🇴 Norges Bank Interest Rate Decision due at 08:00 GMT (15min) Expected: 0% Previous: 0% https://www.dailyfx.com/economic-calendar#2020-09-24
Silver Price Tech Outlook: Two Lines, Gold, and the Dollar

Silver Price Tech Outlook: Two Lines, Gold, and the Dollar

2017-04-28 11:28:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Silver price oversold, testing backside of July trend-line
  • A bounce will quickly bring the recently broken December trend-line into play
  • Can the US dollar provide some help for precious metals?

Is the precious metals rally over? See what’s driving the market!

On Wednesday, when we last looked at silver price action we said our bias was largely hinging on how gold was reacting from the 2011 trend-line, and then it’s subsequent response to nearby support. Gold is holding support around the 1260 mark, while silver on the other hand broke support by way of the December trend-line.

The next level of potential support we were turning to on a break of the multi-month trend-line was the backside of the July to current trend-line. Silver hit it yesterday. So far today, we are seeing buyers step in and keep it supported. The July t-line isn’t viewed as the strongest form of support, but if it can hold a bid there then it will strengthen its presence. With a little more to the upside it won’t be long, though, before we could see silver make its first attempt to recapture the December trend-line. That could be problematic.

Silver is oversold after declining for nearly two weeks straight, a bounce was due. How much steam it can gain from here will be telling as to whether it's simply an oversold bounce, or the beginning of a stronger push higher. A recapture of the December trend-line is the first challenge. A touch and turn lower might mean silver wants to continue to sink towards 16.84.

Silver: Daily

Silver Price Tech Outlook: Two Lines, Gold, and the Dollar

Created with TradingView

The US dollar has been supportive for higher prices, but it hasn’t mattered to the precious metals complex. The US Dollar Index (DXY) isn’t looking very healthy, and as we discussed in this morning’s webinar (sign up here for the next session), a strong push lower in the dollar might help give gold and silver the needed boost to rally. But we aren’t putting a lot of stock right now in that relationship given it isn’t a strong one. We’ll continue to focus on those two markets separately until clarity in the correlation comes back into focus.

US Dollar Index (DXY): Daily

Silver Price Tech Outlook: Two Lines, Gold, and the Dollar

Created with TradingView

For now, silver is caught between two lines and how it responds to either in the coming days could be the tell as to whether to expect a recovery to gain traction, or to start thinking about the next downside support level at 16.84 as the next stopping point.

Paul conducts webinars every week from Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of all upcoming live events.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing 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