Forex Marketz Daily Forex News – Fully Markets Update
The spot silver futures contract has broken lower since the Federal Reserve Board’s monetary policy decision on statement. Silver, however, is still trading above $27 per ounce.
The 100 day simple moving average is also holding up and providing support for silver, for now. Traders should note the bias remains quite bearish after breaking below the key support level in play since early May.
The Federal Reserve, the U.S. central bank and their commentary have impacted metal prices like the spot silver contract. As expected, the Federal Open Market Committee (FOMC) left interest rates, monetary policy and their monthly asset purchase program as is for June.
However, The Federal Open Market Committee could announce by August that tapering is approaching. This is pushing longer-term interest rates higher.
The U.S. central bank said they are planning two 0.25 point rate hikes in 2023. The Federal Open Market Committee economic projections were also updated. The Fed expects higher inflation is on the horizon. Also more FOMC monetary policy members want to make a policy move sooner rather than later.
Daily Spot Silver Technical Analysis
Looking at the above daily spot silver (XAG/USD) MT 4 price action chart, the 14 day relative strength index (RSI) is sloping lower but not yet singling oversold conditions. However, while below the key support, now upside barrier at $27.50 per ounce, the bears remain in the driver’s seat.
Daily close below the 100 day simple moving average at $26.60 opens the door to challenge $25.75 next with $25.70 then coming into play. The next key layer of technical support lines up at the round $25 number. A sustained close below this level brings the year low price point $23.77 per ounce into play.
A daily close above $27.50 brings a rising trend line from 18 May into play at $28.30. The next upside barrier lines up at $28.65 per ounce.
