We’ve seen a lot of downward pressure in the silver market for a while, and it continues to be a situation where the US dollar continues to be the biggest issue that most traders are facing.
Top Regulated Brokers
Silver
The silver market fell during the trading session on Tuesday as we have now filled the gap from the Monday open. The $60 level continues to be a level that I think a lot of traders are watching, but quite frankly, the fact that silver is falling is not a huge surprise in this environment, as the US dollar is strengthening against many currencies, and rates, of course, continue to rise.
We've been in a downtrend for silver for some time, and I don't think that changes. At least not in the short term. The 200-day EMA is at the $67.08 level, and I think that is a bit of a barrier.
Support Floors and the Greenback Impact
Underneath current trading, we have the $57 level offering support, and a breakdown below there could really send silver much lower, perhaps down to the $50 level. All things being equal, I believe that this is a market that, at the first signs of exhaustion, traders will look to get out of it if they are long.
Breaking above the $70 level opens up the possibility of a bigger move, but I think it would take a lot of attitude adjustment to make that happen. I think interest rates would probably have to drop, and at the very least, the US dollar would have to give back some of its strength. I think in the longer term, we have silver as an asset that probably goes much higher, but the reality is that in the meantime, we're not focusing on the demand for silver in the future; we're more worried about the currency implications of the greenback being so strong.
Ready to trade our daily forex analysis? Here are the best Silver trading platforms to choose from.