Silver Price Forecast – Silver Recovers After Initial Dip

Silver Price Forecast Video for 27.07.23

Silver Markets Technical Analysis

Silver initially pulled back just a bit during the session on Wednesday, but it looks as if it is well supported just below. Furthermore, you need to keep in mind that later in the day on Wednesday we have the Federal Reserve, as it is going to throw a lot of volatility in the US dollar with its interest rate decision. Keep in mind that the US dollar and the silver market have a huge negative correlation, at least most of the time.

Ultimately, the $25 level is an area that a lot of people will be paying close attention to, and therefore you need to look at it through the prism of a psychologically important level. If we can break above there, and we already had a couple of times, then it opens up a move toward the $25.50 level. In that scenario, I think you’ve got a situation where you would probably then threaten the $26 level, which has been rather difficult to get above. In that environment, I think you need to look at this through the prism of buying short-term dips.

The 50-Day EMA underneath continues to offer psychological and technical support, and therefore you need to pay close attention to it. If we were to fall from here, it’s likely that a lot of buyers would jump in and protect that area, especially considering it’s right around the $24 level.

Keep in mind that the market had initially pulled back to the 61.8% Fibonacci level to kick off this latest rally, and therefore it’s likely that there are a lot of longer-term buyers willing to come in and pick this thing up. I do like the idea of trying to find value as it occurs, but at this point I think you are probably going to have a noisy day or 2, especially as just after the Federal Reserve, the very next morning we have the European Central Bank coming out and causing a bit of noise with its interest rate decision as well. With this, it’s more or less a “buy on the dips” situation.

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