Silver bears are looking to engage again


  • Silver prices have been dented on US dollar strength.
  • Bears looking for downside extension from resistances.

XAG/USD is trading down nearly 2% on the day after falling from a high of $27.69 to a low of $27.01.

The US dollar is back on form with US Treasury yields that climbed on Wednesday.

The DXY index is up 0.65% trading near the highs of 90.7950. This has followed the 10-year note hitting its highest level in a month.

A much stronger than expected reading on consumer prices earlier have heightened worries the economy may be heading towards a sustained period of higher inflation.

Meanwhile, the US Labor Department said the consumer price index surged 0.8% in April, its largest rise since June 2009, after rising 0.6% in the prior month.

The "core" reading, which excludes the more volatile food and energy portions, jumped 0.9%. Expectations called for overall CPI to rise 0.2% and the core reading to climb 0.3%.

The yield on 10-year Treasury note climbed as high as 1.697%, its highest since April 13 and on pace for its biggest one-day basis point increase since March 18.

Precious markets will note that the US Federal Reserve has repeatedly stated that it views any inflation to be transitory in nature.

On the same day as the CPI data, the Fed's Vice Chair Richard Clarida said it will be "some time" before the US economy is healed enough for the Federal Reserve to consider pulling back its crisis levels of support and he expects the rise in prices to be temporary.

Silver technical analysis

The price has made a 38.2% Fibonacci retracement of the prior daily bearish impulse. 

From this juncture, the bears could start to engage, but there is a note worth confluence of the 61.8% Fibo and prior support above which could well be tested by the bulls.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: ECB’s Lagarde may add to EUR weakness

The American dollar kept rising, heading into the weekly close, with EUR/USD bottoming on Friday at 1.1846 and settling at around 1.1860. On Monday, the focus will be on ECB President Christine Lagarde. EUR/USD maintains its bearish stance despite extreme oversold conditions.

EUR/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

GBP/USD: Delta variant hurting the pound

The GBP/USD pair traded as low as 1.3791, its lowest since mid-April, ending the week a couple of pips above such a level. The Bank of England is having a monetary policy meeting this week. GBP/USD extremely oversold but bearish in the near-term.

GBP/USD News

Ripple fears of a major decline are unwarranted

XRP price remains locked in a range between the psychologically important $1.00 and the neckline of a multi-year inverse head-and-shoulders pattern at $0.76. However, a lack of technical clues leaves frothy forecasts on the sideline until directional confirmation can be gleaned from the charts.

Read more

Where next for markets after the Fed shocker

The Fed surprised markets with an abrupt hawkish shift that has triggered substantial volatility in currency markets. Valeria Bednarik and Yohay Elam explain the surprise, discuss technical level, the next moves in FX and beyond.

Read more

Forex MAJORS

Cryptocurrencies

Signatures