Silver Price Forecast – Silver Shows Hesitation Ahead of FOMC

Silver Price Forecast Video for 23.03.23

Silver Markets Technical Analysis

Silver initially tried to rally a bit during the trading session on Wednesday as the markets are waiting for the FOMC statement. This obviously will have a major influence on the US dollar, so therefore you need to pay close attention to how that influences silver. After all, there are a lot of concerns at this point about how the market will behave, and of course how tight or loose the central banks around the world will continue to be.

The 50-Day EMA sits at the $22.42 area, just above the 200-Day EMA. This causes quite a bit of technical support, therefore it’s likely that any pullback will probably have to deal with the little bit of buying pressure in that area. If we were to break down below there, then it’s possible that we could go down to the $21 level next. Keep in mind, this would probably have to do with a tight central bank in the United States, as it would increase the value of the US dollar and would have interest rates rising again. The knock on effect would be that industry may be slowed down, perhaps driving down industrial demand for the metal.

If we were to turn around and rally from this point, the $23 level will offer a significant amount of resistance, opening up the possibility of a move to the $24 level. The $24 level above is an area where we’ve seen a lot of noise in the past, therefore it would not be surprising at all to see silver struggle to break above and general vicinity. The $25 level above there is an area that has historically been very important, so if we were to somehow break above there, the silver market will probably take off to the upside.

More likely than not, we are going to see a lot of volatility and it’s probably worth noting that position sizing is about the only way you can keep your account safe, assuming that you are going to trade this extraordinarily volatile market. Waiting to see how the day plays out at the end of it might be the best strategy before placing any trade.

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