Silver markets edged down during Tuesday’s trading session to again show signs of resistance at the $ 23 level. This is an area that has been important more than once, and so it should be noted that the area remains important, and if we can get past the $ 23 level then that would be a good sign for the market. to look to the 50 day EMA.
SILVER Video 06.10.21
If we fall below the Monday and Tuesday trading session lows then I think the market is heading towards the $ 22 level and then maybe even all the way down to the most recent low just below. A fall below that level then opens up the possibility of a drop to the $ 20 level, which is a large, round, and psychologically significant number.
Be sure to pay close attention to the fact that the US dollar has a strong negative correlation with this market, so if the US dollar continues to strengthen, and perhaps even more importantly the 10-year yield, it will weigh on the market. money market. The market will continue to be influenced by these influences because quite frankly we’ve seen a lot of commodities sell in general. Having said that, I think the markets will continue to be on the downside over the long term, but if we were to pull higher it will be necessary to remove the $ 24 level to enter a typical “buy and -hold”. I think at this point we’re more likely to see selling pressure than buying pressure.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire