- XAG/USD bears seek a break of the daily support structure.
- Bulls seek an extension beyond current 4-hour resistance.
The price of silver was also pressured overnight on the rising greenback that corrected the start of the week's performance. XAG/USD lost grip falling from a high of $27.11 to low of $26.09 and ended down some 1.4% on the day.
In Asia today, the price is trading at $26.5150 having travelled between a low of $26.42 and a high of $26.51.
The price is flat in a quieter Asian session while in data from overnight, a wider-than-expected US trade deficit and smaller-than-expected increase in factory new orders impeded further dollar gains.
The stock markets overnight took note of comments from US Treasury Secretary Janet Yellen that higher rates might be needed to cool down the economy if it were to overheat.
Meanwhile, the commodities sector was otherwise well supported despite the greenback’s resurgence.
The CRB index was up some 0.8% by the close of play on Wall Street. The dollar index DXY had climbed 0.3% to 91.278. The days ahead will therefore be critical for the precious metals as the dollar firms and commodities are yet to take full note.
Silver technical analysis
Technically, the price is correcting a sharp offer on the 4-hour time frame following a test of the W-formation’s support on the daily chart.
A break of the recent lows from a daily perspective puts the bears firmly back in control.
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.