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Silver Markets Choppy Heading Towards FOMC

By:
Christopher Lewis
Published: Jan 26, 2022, 16:58 UTC

The silver markets have been rather choppy during the trading session on Wednesday as we await the FOMC meeting results and of course press conference.

Silver Markets Choppy Heading Towards FOMC

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Silver markets have been back and forth during the course of the trading session on Wednesday as we continue to see a lot of volatility around the markets in general. After all, the market has high sensitivity to the US dollar, and of course we have the FOMC meeting late in the day. That being said, the market is going to continue to be choppy at best, but at this point in time I think is likely that we would see the 200 day EMA come into the picture as well.

SILVER Video 27.01.22

Looking at this chart, you can see that we have offered support at the $23.60 level, and a breakdown below that level would more than likely send silver down towards the 50 day EMA at the $23.28 level. After that, the $23 comes into the picture. The downtrend line above will offer resistance, so if we were to break above there, then it is likely that we go looking towards the $25 level above. That of course is an area that has been the top of the overall range for some time, and therefore it is likely that we would see plenty of selling pressure if we do get towards that area.

If we were to somehow break above there, it would obviously be explosively bullish, but I do not see that happening in the short term. It is obvious that we have a lot of concerns when it comes to the Federal Reserve tightening, and there think I think it is likely that we see quite a bit of bearish volatility over the next couple of days.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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