Silver Price Daily Forecast – Silver Traders Wait For Clues From The Fed

Silver Video 17.03.21.

Silver Remains Range-Bound Ahead Of Fed Interest Rate Decision

Silver has recently made an attempt to settle below the support at $25.85 but failed to develop sufficient downside momentum while U.S. dollar remained flat against a broad basket of currencies ahead of the Fed Interest Rate Decision.

The U.S. Dollar Index is still stuck in the range between the support at 91.75 and the resistance at 92. Most likely, trading action will remain calm until the Fed releases its Interest Rate Decision and commentary. If the Fed is not dovish enough, the U.S. Dollar Index will move above the 92 level and gain upside momentum which will be bearish for silver and gold price today.

Gold is also trading in a tight range without any signs of momentum which is not surprising as traders wait for the main event of the day. The nearest resistance level for gold is located at the 20 EMA at $1745. If gold settles above this level, silver will get additional support.

Gold/silver ratio has managed to settle above the 20 EMA at 66.35 but failed to get above the 67 level. In case gold/silver ratio gets above the 67 level, it will gain additional upside momentum which will be bearish for silver.

Technical Analysis

The technical picture for silver remained unchanged in recent trading sessions as silver is stuck between the support at $25.85 and the resistance at the 50 EMA at $26.25.

Today, silver traders will likely wait for the Fed Interest Rate Decision before making any significant moves. Silver will likely be able to gain material momentum once it manages to get out of the current trading range.

The direction of this momentum will depend on the Fed and on the reaction of bond markets. If Treasury yields continue to move higher after Fed’s commentary, silver will likely get below the support at $25.85 and quickly get towards the next support level at $25.55.

If Treasury yields pull back from recent highs, silver will have a chance to settle above the 50 EMA and get to the test of the next resistance at $26.70.

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