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Christopher Lewis
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Silver markets have pulled back a bit on Wednesday as the US dollar strengthened quite significantly. As I write this article, we are currently testing the $24 level, which is an area that has been massive support in the past, as well as resistance. If we can break down below there, then the market is likely to go much lower, breaking down towards the $23 level. The $23 level of course is an area that would attract a lot of attention as it was the most previous low area.

SILVER Video 09.09.21

On the other hand, if we can turn around and take out the $25 level, then the market is likely to go much higher. That would obviously be an extraordinarily bullish sign, and therefore I suppose that this market could go much higher, perhaps reaching towards the $27 level. That of course would need to see a weakening US dollar overall, which of course has a negative correlation to the silver market.

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Furthermore, the market also moves upon the idea of industrial demand, and quite frankly there have been a lot of concerns about global growth all of the sudden. If that continues to be a major issue, then silver will almost certainly get crushed. On the other hand, if we were to break above to the upside, then it is likely that it will be a scenario where we have seen a sudden shift in attitude overall. Looking at this chart if we can break above all of the noise that we have recently seen, that would in fact be a very positive sign at this point.

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

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