Silver markets are broken down rather significantly during the trading session on Friday, as the US jobs number was extraordinarily strong, and it sent the US dollar higher against most other currencies around the world. That being the case, the silver market of course will continue to be influenced by the greenback. We are now testing the 200 day EMA, and that of course is rather crucial as well. Ultimately, the fact that we are closing towards the bottom of the range also suggests that silver could break down as well.
SILVER Video 09.12.19
If we were to break down below the $16.50 level, it’s likely that silver will continue to go lower, probably reaching to the $16.41 level which is also the 61.8% Fibonacci retracement level. Ultimately, if we were to do that, then the market would probably drop all the way down to the $16.00 level, and eventually the $15.75 level. On the other side, if we were to rally from here then the market will probably struggle at the $17.00 level. Central banks around the world have been lose, but quite frankly the Federal Reserve has been given yet another reason to stay on hold and not loosen monetary policy as the US economy certainly doesn’t warrant something like that. With this being the case, I believe that the greenback will continue to work against the value of silver and silver is probably showing just how weak it is, and it’s likely that we break down given enough time. This has been a major shift in the attitude of silver. This also could have a knock on effect over in the gold market.
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This article was originally posted on FX Empire
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