Silver Price Forecast – Silver Continues to Struggle With Same Barriers

Silver markets have initially tested the $24 level, only to fail on Thursday as the world awaits for the Federal Reserve statement coming out of Jackson Hole. Quite frankly, the only thing that matters to trade right now is whether or not the Federal Reserve will taper, or stay ultra-loose? This has a major influence on the US dollar, which of course has a major influence on silver. The $24 level has been an area that has acted like a “brick wall”, and therefore it should not be a huge surprise that we have struggled yet again. In fact, I think it is almost impossible to imagine a scenario where we break out without the US dollar falling.

SILVER Video 27.08.21

On the other hand, if we turn around a break down below the bottom of the candlestick, then it is likely that we could go looking towards the $23 level underneath. That is an area that has been a major support level, and therefore if we break down below there it is likely that silver will get pummeled. This will almost certainly company a strengthening US dollar. At that point, the $20 level could be the longer-term target, especially if we see an explosion of the US dollar to the upside.

On a breakout to the upside, the market then goes looking towards the 50 day EMA, which is sitting just below the $25 level. The $25 level has seen significant selling previously, and as a result it would make quite a bit of sense that we could see that as a target, but also a very difficult area to get above.

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