Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot silver futures contract (XAG/USD), the spot contract is trading around $23.95 per ounce and below the two hundred (200) hour simple moving average (SMA) during the early Asian trade session on Friday.
The spot silver contract has failed to break above the 200 day SMA since crossing above the falling trend lines that has been in play since 6 November.
Finally Congress is showing some ability to agree on something. The United States Congress is moving towards a bipartisan $908 billion fiscal stimulus aid package. Next up, Congress will need to agree on a new federal budget. This needs to happen by next week to avert a possible federal government shutdown.
Even with the chance of a new stimulus package, stateside, keeping at risk assets in play, the global coronavirus pandemic (Covid-19) is spreading out of control in the United States. Sooner or later, this will shift sentiment back to save haven assets like the U.S. dollar (USD) over silver.
Today the U.S. Labor Department will publish their November non-farm payroll (NFP) report, unemployment rate, monthly average hourly earnings and labor participation rate.
Daily Spot Silver Technical Analysis (XAG/USD)
Looking at the above four hour MT 4 price chart, the relative strength index (RSI), near overbought at 70, along with the inability of this spot futures contract to break above the 200 hour SMA, could see a test of the former resistance now technical layer of support lining up at $23.10 per ounce.
The next layer of technical support lines up at the round $23 per ounce number with the November monthly low price point at $21.90 then coming into play.
On the upside, a daily close above the 200 hour simple moving average at $24.10 opens the door to challenge $24.30 per ounce. The next upside barrier is at the mid-November high price at $25.10 per ounce. A sustained close above $25.10 opens the door to challenge the October high price point at $26 next.
