Silver is stalling on the offer, but intermarket correlations are compelling

Silver is in the hands of the bears as it struggles below daily resistance.
Positive correlations to the stock market are compelling as the US dollar firms.

Ross J Burland FXStreet

As per the prior analysis, Silver bears taking up the baton towards a 50% mean reversion target, there has been little progress to the downside but the path of least resistance remains with the bears.

Prior analysis, daily chart

Silver prices have stalled at daily resistance and in the day’s move to the downside, it has subsequently formed a new 4-hour resistance at 25.91.

Supply would be anticipated to reemerge there and result in a deeper bearish retracement towards the early April highs and a confluence with the 50% mean reversion level of the latest bullish daily impulse at 25.50.

Live market, 1-hour chart

It's been a sideways chop since the prior analysis and the price is flat on the day so far.

However, from a longer-term vantage point, the bias is to the upside and given the recent test of the 38.2% Fibonacci on some broker feeds, then there is a possibility that the price can firm at this juncture.

Monthly chart

The price has already tested the monthly support of the W-formation's neckline and is moving higher.

That being said, the US dollar is in the hands of the bulls from critical support which could give rise to a continuation in the downside on the daily chart for silver prices:

DXY attempts to recover as US stocks continue to bleed

The positive correlation to US stocks is also worth noting:

S&P 500 / XAG/USD daily chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.