Silver moved lower on Friday and finished the week in the red down 1.94%. The decline in silver came in conjunction with a drop in gold prices. Both were impacted by the rise in the dollar. U.S. Yields moved higher despite a smaller than expected gain in the Markit PMI services, manufacturing and compositive index.
Silver prices moved lower on Friday and were weighed down after rebounded for 2-consecutive trading sessions. Support is seen near July lows at 24.75. Resistance is seen near the 20-day moving average of 25.88. Short-term momentum flip-flopped and turned negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is negative. The MACD histogram is printing in negative territory with a declining trajectory which points to lower prices. Silver prices broke down this week, closing below trend line support, and during the week, it retraced its losses only to fail at the breakdown level.
Market PMI Disappoints
The service sector in the U.S. decelerated in July. The Markit, July U.S. services, flash PMI 59.8 versus 64.8 expected. The final prior reading for May was 64.6. Manufacturing was also slower than expected but did not experience a similar drop. Since most of the recent activity in the U.S. was the rebound in hospitality it would make sense that services would feel the pinch. Manufacturing came in at 63.1 verse 62.1 expected. The Markit composite PMI was 59.7 versus 63.7 prior.
This article was originally posted on FX Empire