The spot silver futures contract is struggling to extend gains from a three week low price point. The white metal is consolidating quietly around $23.50 per ounce as we head into a busy Wednesday.
Today is the U.S. Federal Reserve monetary policy decision. The U.S. central bank is not expected to raise interest rates. The Federal Reserve should also keep monthly asset purchases as is.
However, the US central bank is expected to announce tapering of their emergency pandemic era monthly buys starting in December. The program is likely to end during the first half of next year.
The U.S. economic data calendar is also busy today. The private ADP non-farm payroll change will be published. The ISM U.S. services purchasing managers’ index (PMI) will also be released.
The United Kingdom will release their monthly Markit purchasing managers’ index. Nationwide will publish their UK monthly house price index (HPI). Also, the euro area will publish their monthly unemployment rate.
Daily Spot Silver Technical Report
Looking at the above daily spot silver futures contract, the 14 day MACD histogram looks somewhat bearish. The fifty (50) day simple moving average lining up near $23.40 per ounce is immediate technical support.
A daily close below the 50 day simple moving average opens the door for a congestion area at the 20 August high price point at $22.90 to a horizontal support level at $22.80 per ounce. A daily close below $22.80 opens the door for $22 per ounce before the yearly low price level at $21.42 per ounce.
On the upside, there is former support now technical resistance lining up at rising trend line near $24.05 per ounce. This could bring the bulls back in with October monthly high of $24.82 coming into play next. The next upside barrier lines up at the September high price point of $24.85 per ounce.