Silver Price Forecast – Silver markets rally for Wednesday session

The Silver markets rallied a bit during the trading session on Wednesday, as we have reached a significant support line. However, there are a multitude of questions currently when it comes to both the currency and precious metals markets, so we are still in a “no go” zone.
Christopher Lewis
Silver daily chart, April 25, 2019

The silver market rallied a bit during the trading session on Wednesday, using the bottom of the falling wedge that I have marked on the chart as support. At this point, I believe that the $15.00 level is significant resistance, based upon the fact that it is a large round number. Beyond that, if we were to break above the downtrend line of the wedge, then we could start to think about the market rallied a bit. Overall though, I think at this point it’s likely that we are going to see more back and forth as the US dollar is at extreme highs.

SILVER Video 25.04.19

If the US dollar continues to take off to the upside, that should put a lot of pressure on the silver market. One of the easiest ways to pay attention to US dollar strength is to watch the EUR/USD pair. As that market falls, that shows extreme strength in the US dollar, as we have seen as of late. I think ultimately this is a market that will have to make some type of resolution rather soon, but in the meantime are simply sitting here on the sidelines and waiting to see what Silver does next. I do think we have an explosive move coming in when it happens it could be one of two particular scenarios that I see: the initial scenario would be that a break above the downtrend line could send this market as high as the top of the falling wedge. That would be a target for $16. Obviously, we need a certain amount of US dollar weakness to make that happen. The secondary possibility is that we break down below the $14.75 level on a daily close, then it opens the door to the $14.50 level, and then possibly the $14.00 level.

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