Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot silver futures contract on the above daily MT 4 price action chart, the white bullion is challenging the key two hundred (200) day simple moving average (SMA) which lines up at $25 per ounce. Price action is just above this key level during the early Asian trade session on Wednesday.
Spot silver, on Tuesday, got a boost as U.S. Treasury yields were routed, which hurt the U.S. dollar. Falling Treasury yields pressured the greenback which helped commodities like the white metal.
Today’s economic calendar will feature, monthly services PMIs. The Eurozone is publishing their final monthly purchasing managers’ index (PMI). Italy as well as the United Kingdom will also publish their monthly final monthly purchasing managers’ indices.
The U.S. Federal Reserve Board will release their monthly monetary policy meeting minutes and Federal Open Market Committee (FOMC) Dr. Charles Evans is giving commentary today. The world’s largest economy will publish their monthly trade data as well as weekly crude oil inventory data.
Daily Spot Silver Technical Analysis (XAG/USD)
The above spot silver (XAG/USD) daily chart needs a daily close above the 200 day simple moving average for a short-term recovery to gain traction. The 14-day Relative Strength Index (RSI), however, is signaling bearish price action.
This means that traders should exhibit some caution as a recovery could be shallow, at best, for the silver contract.
With that said, should silver fail to see a daily close above the 200 day simple moving average and $25 per ounce, the bears could then reenter this market. If this happens, traders would focus lower towards initial technical support in play at the 5 April low price point. This downside barrier is at $24.61 per ounce.
The next downside barrier is at the round $24 per ounce with the three month low price point in play at $23.78 per ounce then coming into focus.
