[ad_1]
The silver market is currently hovering just above the $20 level and may see some buying pressure due to the 61.8% Fibonacci level and options traders’ interest.
- The silver market has been rather uneventful lately, hovering just above the $20 level.
- Although this price point is likely to be respected by the market, it remains to be seen whether it will hold.
- The recent uptick in the US dollar is causing concern for commodities, especially for volatile silver. However, there are several factors that may provide some support for silver in the short term.
Firstly, the 61.8% Fibonacci level sits at the $20 mark, which may attract buying pressure. Additionally, commodities markets are heavily influenced by options traders, and the $20 strike price is a major point of interest. This could mean that sellers will face some resistance in this area.
However, there are also some bearish indicators that cannot be ignored. The 50-Day EMA is slowing down and may cross below the 200-Day EMA, which is known as a “death cross.” Although this is a lagging indicator, some longer-term traders pay attention to it. Furthermore, a bearish candlestick formed on Tuesday after Jerome Powell hinted at higher interest rates. This caused a major selloff in the US dollar, and anything reliant on it, including silver.
Silver also has an industrial input, which means that if the industry slows down, it could negatively impact the value of silver. With the recent discussions of rising interest rates and a potential slowdown in the industry, there is a possibility that the silver market may experience some turbulence.
The silver market is currently hovering just above the $20 level and may see some buying pressure due to the 61.8% Fibonacci level and options traders’ interest. However, there are also bearish indicators, such as the potential “death cross” and a recent selloff after discussions of higher interest rates. With the industrial input of silver also potentially impacted by a slowdown in the industry, it remains to be seen whether the market can maintain its current position. Traders should exercise caution and keep a close eye on the market for any significant shifts. Some of the biggest indicators for wearer silver may go will of course be the US dollar, and interest rates in America as both of those rising will typically be bad for precious metals in general. A lack of industrial demand is a major concern at this point as well, as central banks continue to tighten monetary policy, so pay close attention to central bank statements.
Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.
[ad_2]