Silver price is on a rebound after the better-than-expected US jobs data triggered a plunge to $27.04. According to the ADP nonfarm employment report, 978,000 additional individuals were employed in May compared to the forecasted 650,000. In April, that number was lower at 654,000.
At the same time, the initial jobless claims have come in lower-than-expected at 385,000. Analysts had forecasted a reading of 390,000, which was still lower than the prior week’s 405,000. The better-than-expected numbers are a sign that the US labor market is steadily recovering.
On Friday, the focus will be on the country’s unemployment rate. Economists expect it to have dropped to 5.9% in May from 6.1% in April. In the prior release, the rate had risen from 6.0%. The Federal Reserve has insisted that it will maintain an accommodative monetary policy until the employment steadily and evenly recovers.
Silver technical outlook
Silver price is down by 3.4% at 27.21. It has dropped from 28.25 earlier in the day to an intraday low of 27.04. On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. With a RSI of 33, it is a few points away from entering the oversold territory.
I expect the precious metal to continue finding support at 27, which is its lowest level since mid-May. As it rebounds, it will probably ease at around 27.50 before rising further to find resistance at 27.90 along the 25 and 50-day EMAs.