Silver Price Forecast – Silver markets find buyers again

Silver markets went back and forth during the trading session on Friday, reaching down towards the psychologically and structurally important $15.00 level. This is essentially the 50% Fibonacci retracement of the bounce from the $14.00 level, so it will attract a lot of attention. Well, that and the fact that it is the significant psychological figure.

SILVER Video 08.04.19

Pay attention to the US dollar, because it is a bit overbought and if it does start to roll over it should help silver. One such proxy to use for this is the EUR/USD pair, and the support level at the 1.12 level. If it continues to hold, then it gives Silver a fighting chance to appreciate solely upon a softening US dollar. Beyond that, we also have central banks around the world who looks very soft when it comes to interest rate policy, and that of course will help precious metals as well. After all, precious metals hold their value much better than fiat currencies that are being printed.

The other side of the equation is that we break down below the massive hammer from the Thursday session, which would be negative and could send silver back down to the $14.50 level. Underneath there, we could go as low as the $14 level but it seems to be a bit of a stretch at this point as we see so much in the way of buying pressure near the $15.00 level. To the upside, I think the $15.50 level will be resistance that is going to be difficult to break above, but if we do $16 could be in the future.

Please let us know what you think in the comments below