Silver bulls move in on a critical level of resistance


  • Silver is moving in on a critical level of resistance as the US dollar crumbles.
  • US ADP jobs data is a negative prelude ahead of the Nonfarm Payrolls showdown, pressuring the greenback. 

The price of silver continues to test the ceiling of the dynamic resistance as the US dollar struggles to stay within a bullish territory.

At the time of writing, XAG/USD is trading at $24.17 between a low of $23.76 and a high of $24.026.

The US dollar has come under further pressure on Wednesday as measured against a basket of major currencies, (DXY index), following a US jobs market report that has missed expectations by a mile.

The data could be seen as a prelude to the highly anticipated Nonfarm Payrolls report this Friday. 

The ADP National Employment Report has shown that private payrolls rose by 374,000 in August, up from 326,000 in July but well short of the 613,000 forecasts. 

The data has been perceived to be indicative of a broad cool-down in the labour market recovery amid a persistent worker drought.

This brings the risks of the highly contagious COVID Delta variant to the fore and dampens prospects of an imminent taper announcement from the US Federal Reserve. 

On the flipside, factory activity has surprised to the upside by expanding at an ever-so-slightly accelerated pace last month due to an uptick in new orders.

The Institute for Supply Management's (ISM) purchasing managers' index (PMI) added a modest 0.4 points to 59.9.

The final take on August manufacturing PMI was also delivering a positive reading of 61.1.

Nevertheless, the DXY index is in the red by some 0.23% at the time of writing and has moved in on a critical structure near the June highs which might be regarded as the last defence before 91.80:

DXY daily chart

Silver price analysis

The price of silver is testing a dynamic level of resistance and a breach there will leave the bulls in good stead for prospects of a medium-term bullish breakout.

On the downside, 23.50 guards 23.00/22.80 support levels. 

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 eases below 1.1300 amid firmer yields, Fed’s Powell eyed

EUR/USD remains pressured towards 1.1250, reversing 2021’s biggest daily gains as the US dollar rebounds with the Treasury yields. Global scientists, policymakers placate fears of Omicron even as national border checks return to the table. German inflation, central bankers’ speeches eyed.

EUR/USD News

GBP/USD remains vulnerable below 1.3350 amid USD strength, Brexit woes

GBP/USD is trading below 1.3350, lacking any firm directional bias heading into the European session. Renewed USD buying acts as a headwind for the major amid Brexit and covid-related uncertainties. Expectations for a BoE rate hike limit the downside.

GBP/USD News

Gold faces a wall of resistance en-route $1,800

Gold price rebounds but not out of the woods yet while below $1,800. Omicron covid variant woes will continue to play out, impacting USD and gold.

Gold News

MATIC price eyes 15% advance as Uniswap prepares to migrate to Polygon

MATIC price recently swept the swing lows of a crucial barrier. This development comes as the cryptocurrency market recovers from the COVID-induced crash over the past three days.

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures