Silver Approaches Key Resistance Level Amid US Good Trade Balance News


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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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.

Latest from Forex Analysis

AUD/JPY Analysis: Rate Falls to Important Support EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

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.