FX Empire: Silver Price Forecast – Silver Continues to Build Pressure

Silver looks bullish, but at this point there is so much in the way of central bank noise, it shouldn’t be surprising that it has been noisy trading.

Silver Markets Technical Analysis

In the Thursday session, silver showed a notable rally, although the market remains subject to considerable noise. The precious metals markets are currently grappling with the impact of both the Federal Reserve and the European Central Bank statements. As a result, while silver appears to have a bullish outlook, short-term clarity may be somewhat elusive. Nevertheless, the market does not seem conducive to selling opportunities.

The pivotal $25 level is attracting significant attention as a psychologically important threshold for market participants. A breakout above this level, which has occurred a few times before, could potentially pave the way for a move towards the $25.50 region. Subsequently, the market may encounter resistance at the $26 level, which has proven to be a challenging barrier to surpass. In such a scenario, traders may find buying short-term dips to be a viable strategy.

The 50-Day Exponential Moving Average remains a crucial indicator, providing both psychological and technical support. In the event of a decline from current levels, it is highly likely that buyers will be eager to step in and defend the area around $24, where the 50-Day EMA is situated. Given that silver often follows technical patterns, such behavior is to be expected.

It’s worth noting that the recent rally in the silver market commenced from a pullback to the 61.8% Fibonacci level, indicating the presence of numerous longer-term buyers ready to enter the market at opportune price points. As an expert, I favor the approach of seeking value opportunities as they arise. However, it’s important to acknowledge that the upcoming days might be noisy, particularly as the European Central Bank announces its interest rate decision shortly after the Federal Reserve’s announcement.

At the end of the day, silver exhibited resilience amidst a volatile trading session. The Federal Reserve’s impending interest rate decision is expected to have implications for the US dollar, potentially impacting the silver market. The critical $25 level remains a focal point of interest, and a successful breakout above it could lead to further gains. The 50-Day EMA holds vital support, and buyers are likely to actively defend the $24 level in case of a pullback. The presence of longer-term buyers, evident from the rally off the 61.8% Fibonacci level, suggests an underlying positive sentiment in the market. As uncertainty prevails with central bank announcements, adopting a “buy on the dips” strategy appears to be the approach favored by traders seeking opportunities in the silver market.