Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot silver futures contract, silver has started to lose some downward momentum after bouncing off a multi-day low price point. The white metal is currently trading around $25.15 per ounce during the morning Asian trade session.
With that the spot silver contract seems to be in the process of recovering from a nine week low price point in play at $24.40 per ounce.
Spot silver traders are watching a number of geo-political events from a massive container ship blocking the Suez Canal to political and trade tensions between China and the United States. North Korea has also fired missiles into the Sea of Japan and coronavirus pandemic headlines.
The euro area is having major issues concerning supply and Covid-19 vaccinations. The United Kingdom has taken a conciliatory tone with the European Union over the coronavirus vaccine. The UK has also agreed to work with the European Union on how to distribute it better.
This has hurt trader sentiment across the global financial markets. At risk assets are under pressure. The European Union has been slow to vaccinate against the Covid-19 virus. Several European nations have also extended coronavirus lockdowns and restriction until May as new cases are spiking higher.
Daily Spot Silver Technical Analysis
The relative strength index (RSI), on the above four hour MT 4 price chart, is looking positive which could be good for silver bulls. The one week old descending trade channel as well as being below the two hundred (200) hour simple moving average is a good sign for the bears.
While below the descending channel resistance in play at $25.30/1 per ounce, the bears remain in the driver’s seat. A daily close above here brings the 200 hour simple moving average into play at $26.45 per ounce.
On the downside, a close below $25 opens the door for the monthly low price point in play at $24.80 per ounce with channel support at $24.50 per ounce. There is a support line in play since 5 March in play at $24.35.
