• Silver refreshes intraday low as US dollar picks up bids.
  • Greenback shrugs off downbeat Treasury yields ahead of US Retail Sales, FOMC.
  • Risk catalysts keep driver’s seat, Fed’s move eyed.

Silver (XAG/USD) remains on the back foot for the third consecutive day, taking offers around an intraday low of $27.59 amid early Tuesday. In doing so, the white metal reacts to the latest pick-up in the US dollar index (DXY) amid cautious markets.

DXY regains upside momentum, following a sluggish start to the week, while picking up bids near 90.53, up 0.05% intraday, by the press time. The greenback gauge seems to ignore the recent fall in the US 10-year Treasury yields amid the market’s indecision ahead of Wednesday’s Federal Open Market Committee (FOMC). That said, the US 10-year Treasury yields drop for the first time in three-day, down 1.4 basis points (bps) to 1.487% while writing.

It should, however, be noted that the recent recovery in the US inflation expectations, per the data conveyed by the Federal Reserve banks of New York and St. Louis, underpin safe-haven demand of the greenback amid fears of Fed’s tapering.

Also on the same line could be the chatters that more Fed policymakers will convey their bullish bias for the dot-plot in Wednesday’s meeting.

Furthermore, fears of the Delta variant of the covid and full markets’ reaction to the Group of Seven (G7) meeting updates, mainly concerning China news, exerts additional downside pressure on the market sentiment and weighs on the silver prices.

Today’s US Retail Sales may offer intermediate bounce to the white metal if the actual readings for May match downbeat forecasts, by probing the odds of the Fed’s tapering. However, traders are likely to remain cautious and may choose to extend the previous downtrend ahead of the Fed’s verdict.

Read: Federal Reserve Preview: First up, then down? Playbook for trading the Fed

Technical analysis

A clear downside break of 21-day SMA directs silver prices to an ascending support line from April 29.

Additional important levels

Overview
Today last price 27.64
Today Daily Change -0.22
Today Daily Change % -0.79%
Today daily open 27.86
 
Trends
Daily SMA20 27.84
Daily SMA50 26.91
Daily SMA100 26.59
Daily SMA200 25.73
 
Levels
Previous Daily High 28.02
Previous Daily Low 27.47
Previous Weekly High 28.29
Previous Weekly Low 27.47
Previous Monthly High 28.75
Previous Monthly Low 25.81
Daily Fibonacci 38.2% 27.68
Daily Fibonacci 61.8% 27.81
Daily Pivot Point S1 27.54
Daily Pivot Point S2 27.23
Daily Pivot Point S3 26.99
Daily Pivot Point R1 28.09
Daily Pivot Point R2 28.33
Daily Pivot Point R3 28.65

 

 

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