Silver Price Rebound Bulls In Control Above $17.51
Silver price (XAGUSD) managed yesterday to recover all of the sharp losses during the European trading session. The three days sell-off stalled yesterday at the monthly lows around $17. Silver started today also in the positive foot as investors trying to asses the coronavirus outbreak damage in the global economy.
Fed yesterday kept the interest rates unchanged in 1.50%-1.75% range. Fed noted that the U.S. economy is growing at a moderate rate while the inflation remains subdued. On a 12-month basis core inflation falls below 2%. The household spending is increasing while the investments infixed assets remain weak. Fed Chair Powell warned that the coronavirus spread will hit China’s economy and that could spill in the USA as well.
The silver price rebound cancelled the recent negative momentum. The pair managed yesterday to reverse the heavy losses and also managed to break above the 50-day moving average and finally to close even above the 100-day moving average. The technical outlook has regained the positive momentum after yesterday’s decisive settlement above the 100-day moving average.
On the upside, the immediate hurdle for silver price will be met at $17.73 the daily top. If silver price breaks above, the next resistance to watch is at $18.10 the high from January 28th session. The next critical resistance stands at $18.34 the high from January 27th.
On the downside, intraday support for the silver price will be met at $17.51 the 100-day moving and at $17.27 the daily low. Next support zone to watch on the downside stands at $17.08 the monthly low.