Silver Price Forecast Video for 16.06.23
Silver Markets Technical Analysis
Silver has fallen rather hard during the trading session on Thursday as we continue to see a lot of noisy behavior, especially now that the Federal Reserve came out much more hawkish than people expected. While they did pause as far as the rate hike cycle is concerned, the reality is that they are likely to continue raising rates in the future according to Federal Reserve Chairman Jerome Powell and the committee itself. Because of this, traders are starting to price in the idea that the US dollar is going to continue to skyrocket.
Overnight, the US dollar did rally rather significantly against a handful of currencies, so that has created a bit of downward pressure on silver. That being said, the 200-Day EMA sits just below, near the $23 level and is going to offer a significant amount of support. As long as we can stay above that, we are still technically in an uptrend. It’s also worth noting that we are near the 50% Fibonacci level, so that will cause a certain amount of support in and of itself.
If we were to break down below there, then it opens up the possibility of a move down to the 61.8% Fibonacci level, and then the $22 level. Breaking down below the $22 level would open up a massive selloff, perhaps down to the $20 level underneath, which is where the entire move started. It’s a large, round, psychologically significant figure, and an area that will obviously have a lot of “market memory” attached to it.
I think it’s probably going to be a situation that if we get down there, silver is probably in serious trouble. Keep in mind that there is a lot of negative correlation between the US dollar and silver, and that will more likely than not continue to be the way this market plays out. All things being equal, I think that silver is in the process of trying to figure out what to do next, and the 200-Day EMA is going to be a major indicator that a lot of people will be paying tight close attention to.
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This article was originally posted on FX Empire
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