News & Analysis / Analysis / Silver Approaches Key Resistance Level Amid US Good Trade Balance News

Silver Approaches Key Resistance Level Amid US Good Trade Balance News

FXOpen

Silver extended upside movement on Monday, increasing the price of white metal to more than 16.80 an ounce as bulls gain strength. The technical bias remains extremely bearish because of a lower low and lower high in the recent downside move.

Technical Analysis

As of this writing, the precious metal is being traded near $16.83 an ounce. A hurdle can be seen around $17.00-$17.09 an ounce, the confluence of psychological number as well as a major horizontal resistance area as demonstrated in the given below daily chart. A break and daily closing above the $17.09 resistance shall incite renewed buying interest, validating a move towards $18.50 resistance zone.

Silver Approaches Key Resistance Level Amid US Good Trade Balance News

On the downside, the precious metal is expected to find a support near $16.44, the low of today ahead of $16.16, the swing low of the recent downside move and then $16.00, the psychological number. The technical bias shall remain bearish as long as the $18.89 resistance area is intact.

US Goods Trade Balance

The US seasonally-adjusted goods trade deficit for October increased to $62.0bn from $56.5bn in September and was above expectations of a $59.2bn deficit for the month. The October deficit was also slightly above the $61.6bn deficit seen in October 2015. Exports declined 2.7% on the month with a 0.4% annual decline, which will cause some concerns over underling trends, although monthly data will inevitably be volatile. Overall imports increased 1.1% on the month and were unchanged from the previous year. There was a 1.9% increase in capital goods imports for the month, while auto shipments declined 2.1%.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal near $17.09 an ounce appears to be a good strategy if we get a valid bearish reversal candle near that level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Indices

Chinese Stocks Decline Amid Tariff Threats

According to Bloomberg, President Donald Trump raised the possibility of imposing tariffs on China during his second day in office.

“We’re considering a 10% tariff on China,” Trump announced during a White House event on Tuesday, indicating February 1

Shares

Oracle Stock (ORCL) Surges Amid Trump’s Initiative

Stargate – an initiative unveiled by Donald Trump on his second day as president – represents a collaborative project between OpenAI, SoftBank, and Oracle to advance artificial intelligence infrastructure in the United States. The project’s partners also include Microsoft, MGX, Arm,

Forex Analysis

Market Analysis: EUR/USD Starts Increase While USD/JPY Corrects Gains

EUR/USD started a decent upward move above the 1.0350 resistance. USD/JPY is correcting gains and now consolidates below 156.00.

Important Takeaways for EUR/USD and USD/JPY Analysis Today

· The Euro found support and started a

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.