Silver price (XAGUSD) is up by about 1% today as part of the broader rally in the market. The metal is also rising because of the overall weaker dollar. Other metals like gold and copper price are also up by more than 0.15% and 0.60%, respectively.
Silver price is gaining today because of the overall weaker dollar. The dollar index has fallen by more than 0.50%. That is because of the dollar has fallen by 0.75% against the Swedish krona, 1.15% against the British pound, and 0.40% against the euro. It has also fallen against all other major currencies. Like most dollar-traded commodities, silver usually has an inverse relationship with the dollar.
Silver is also rising because of the overall strength of the market. In Europe, the DAX index has risen by more than 3% while in the United States, futures tied to the Dow Jones and S&P 500 have risen by more than 2%. In the past, silver price tends to rise when the overall market rises.
Silver price technical analysis
The four-hour chart shows that silver price has made some steady gains after it reached a low of $21.65 on September 24. The price is now trading at $23, which is the highest it has been since Thursday last week. It is also slightly below the 25-day exponential moving average but it is above the 25-day Arnoud Legoux moving average.
Most importantly, the price appears to be finding some strong resistance close to the 23.6% Fibonacci retracement level. It also seems to have formed a bearish flag pattern. Therefore, the price is likely to break out lower as bears attempt to retest last week’s low of $21.65. On the flip side, a move above the 23.6% retracement will invalidate this trend.
Don’t miss a beat! Follow us on Telegram and Twitter.
Silver technical chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.