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
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
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:https://t.co/qxQwHgD9Ey https://t.co/ym73tgtHLn
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/ytHqOoHnxQ
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/155l4SQU6P
Silver Prices Aim Lower as Markets Hint Broad Selloff to Resume

Silver Prices Aim Lower as Markets Hint Broad Selloff to Resume

Ilya Spivak, Head Strategist, APAC

SILVER PRICES, US DOLLAR, STOCKS, S&P 500, CORONAVIRUS – Talking Points:

  • Silver prices echo traders’ liquidity demand amid Covid-19 outbreak
  • Break of rising trend support suggests downtrend might be resuming
  • Downturn may reflect broader credit stress returning across markets

Silver prices have been tracking alongside stocks and inversely of the US Dollar amid the coronavirus outbreak. The metal plunged alongside a broad spectrum of assets such as stocks, most G10 FX currencies, cycle-sensitive commodities and gold in the second half of March as widespread lockdowns brought the global economy to a standstill, pressuring credit markets and inspiring liquidation.

Not surprisingly, the US Dollar thrived against this backdrop. The most liquid form of cash available was a natural beneficiary as financing costs spiked and market participants divested portfolios to assure access to capital and reduce exposure to breakneck volatility. An about-face reversal was triggered as the Fed rushed out a series of back-to-back easing measures, reducing funding stress.

Silver price vs US Dollar, S&P 500 price chart

Silver price 4-hour chart created with TradingView

Prices now appear to be re-engaging the downtrend. A break of rising trendline support guiding the recovery form mid-March lows now argues for a bearish pivot in the near-term directional bias. Positioning seems to imply that a corrective upswing has run its course and downside progress is on the cusp of resumption. Immediate support is in the 13.55-82 zone. Breaking above 15.84 may neutralize selling pressure.

Silver price chart, XAG/USD, technical analysis

Silver price 4-hour chart created with TradingView

What this reversal may imply about broader market sentiment remains to be seen. Still, silver’s gearing toward the pro-risk, anti-USD side of the increasingly binary asset universe is eye-catching. Renewed selling pressure may speak to a broader-based capitulation of recent optimism as markets absorb the Fed’s credit-boosting actions, refocusing on the dire state of the global business cycle.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Ilya Spivak
Building Confidence in Trading
Get My Guide

RESOURCES FOR TRADERS

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES