Silver Price Forecast – Silver markets break hard to the downside

Silver markets broke hard to the downside during the trading session on Tuesday, as we continue to see a lot of US dollar strength. Silver is especially sensitive to the US dollar, and now it looks as if we are ready to break through even more support.
Christopher Lewis
Silver daily chart, April 24, 2019

Silver markets broke hard to the downside during the trading session on Tuesday, reaching towards the bottom of the rising wedge that I have on the chart. If we were to break down below that level, it would be a very negative sign. At that point in time it’s very likely that the silver market will go looking towards the $14.50 level, and possibly even as low as the $14.00 level. If we do bounce from here, it’s not until we break the downtrend line that I would be interested in buying. I think that the $15.00 level is significant from not only a psychological standpoint but also the structural one.

SILVER Video 24.04.19

If we did break out to the upside, then we would have to deal with the lot of pressure from the 50 and the 200 day exponential moving average. Quite frankly, and especially after the Tuesday session, the path of least resistance is probably lower. That doesn’t mean that we will get a short-term bounce, but I look at a short-term bounce as a potential selling opportunity given enough time.

The US dollar has been strong and that of course works silver over pretty well. The fact that the EUR/USD pair is struggling at the 1.12 level could give more of a “flush” to the downside for precious metals overall, which typically silver seems to sell off quicker than gold. For what it’s worth, the gold market had a tough day as well, breaking through major support.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.