Silver Price Forecast – Silver markets pull back
Perhaps in reaction to the tweets by Donald Trump suggesting that he was going to raise trade tariffs against the Chinese, the bond market went wild. By the sudden need for US dollars, Silver markets rolled over a bit and sliced through the $14.85 level, an area that has been supportive in the past. If we break down below the bottom of the candle stick, it’s likely that we will go looking towards the lows of the massive Friday candlestick.
SILVER Video 07.05.19
However, if we did manage to close above the $15.00 level on the daily chart, we could go looking towards the 50 day EMA, which is pictured in red on the chart. Beyond that, we could go looking towards the 200 day EMA which is now blue. Clearing that area, then we could have a massive move to reach towards the top of the falling wedge, which has a potential move all the way to the $16.00 level. However, we have a lot of work to do before that happens obviously.
The alternate scenario is that we break down below the lows of the session on Friday, and then we could go looking towards the $14.50 level, then the $14.25 level, followed by the $14.00 level, all of which are crucial. Pay attention to the US dollar, because this market can move in the opposite direction of the greenback, so if it starts to rise, that can weigh upon the silver market and of course it can work in the exact opposite direction as well.
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This article was originally posted on FX Empire
