Silver continues to be very noisy on Friday as we have pulled back a bit despite the fact that interest rates have dropped.
The 50-day EMA just above continues to offer a little bit of resistance and therefore I think it does make a certain amount of sense that we just hang out in this region.
Quite frankly, I believe this is a market that given enough time probably has to make a bigger decision, but as we head into the weekend it's difficult to get overly aggressive with anything, let alone a market that is extraordinarily volatile like silver.
Top Regulated Brokers
Silver Continues to be Noisy
The XAG/USD market pulling back from here could open up the possibility of a test of the $70.00 level. The 200-day EMA sits just below there, and I think it opens up the possibility of even more support. To the upside, we have the $80.00 level, which of course is above the 50-day EMA.
The $80.00 level is essentially fair value from the longer-term consolidation range, which extends all the way to the $90.00 level. That $90.00 level I think is a target eventually, but it's going to take a while to get there. If we were to break out above there, then I think you start to see silver behave extraordinarily bullish.
There is a lot of demand out there for the little bit of supply that we have for silver, but as long as interest rates remain relatively high, I think a lot of people are going to be very hesitant to buy a lot of silver. Furthermore, as we head into the weekend, we don't know what the headlines will be, and therefore it makes sense that we have somewhat of a lackluster end.
Ready to trade our daily forex analysis and predictions? Here are the best Silver trading brokers to choose from.