Silver markets have initially fallen during the day on Wednesday but do seem to be respecting the uptrend line from the ascending triangle that has been so important for so long. With that being the case, it should not be a huge surprise that the market is trying to slow down the descent. It also ties in with the US dollar losing a little bit of strength during the course of the trading session, but we are still below the 200 day EMA. This is a major indicator that a lot of people will pay close attention to, and therefore think it does make sense that we would see it be important.
SILVER Video 22.07.21
If we can break above the 200 day EMA, then it is possible that silver will go looking towards the 50 day EMA, but on the other hand if we were to turn around a break down below the lows of the last couple of sessions, that could open up even more fierce selling, perhaps even sending silver towards the $25 level. The $25 level of course is a large, round, psychologically significant figure and therefore we need to see that level hold.
If it does not, then it would begin a rather negative turn of events for the silver market, opening up the possibility of a longer-term downtrend. The market breaking above the highs of last week could kick off an attempt to get back to the gap above, which sits at the $27.75 level. Regardless, I think the one thing you should do is pay close attention to risk appetite overall, and perhaps even the US Dollar Index and its effect on this market.
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This article was originally posted on FX Empire