Silver Price Forecast – Silver markets remain choppy for WednesdayThe Silver markets went back and forth during the majority of the day on Wednesday, as we have gotten to some relatively high levels recently. However, I think at this point we are essentially trying to figure out where to go next.
Silver markets have gone sideways during most of the trading session on Wednesday, testing the $14.70 level for support, and finding it. The $14.85 level has offered resistance, and we have just gone back and forth. The market has been explosive lately, so it’s not overly surprising that we may need to take a bit of a breather. I think that the $15 level above will continue to cause a major resistance barrier, so be aware of that if we do rally. Otherwise, we could pullback but I think that the $14.50 level should offer plenty of support as well. I think the easiest way to play the silver market is to simply watch the US dollar.
The EUR/USD pair is the easiest way to keep track of the US dollar, as it is so highly represented in the US Dollar Index. If the EUR/USD pair rallies, that typically help silver as it brings down the value of the US dollar by default. Otherwise, if the pair falls and breaks through a major barrier such at the 1.15 level, then I think silver will collapse and we will drop rather drastically. However, you can see that over the last couple of weeks we have seen surges higher followed by short-term pullbacks that have been buying opportunities. I recognize it is going to take a significant amount of momentum building to clear the $15 level, but once we do I think the market will continue to go much higher. At this point, I believe the $14 level is a massive “floor.”