Silver Continues Losing Streak After Australia’s PPI News

FXOpen

Silver extended downside movement on Friday, dragging the price of white metal to less than $17.00 following the release of some key economic news from Australia. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the precious metal is being traded near $16.69. A support may be noted around $16.16, the short term support area ahead of $16.00, the psychological number and then $15.62, the swing low of the last major downside move as demonstrated in the given below daily chart.

Silver Continues Losing Streak After Australia’s PPI News

On the upside, the precious metal is expected to face a hurdle near $17.32, the trendline resistance area ahead of $17.86, the 50% fib level and then $19.00, the confluence of psychological number as well as swing high of the last major upside rally. The technical bias shall remain bearish as long as the $19.00 resistance area is intact.

Australia’s Producer Price Index

Producer prices rose 0.5 per cent in the December quarter, confirming the message of weak consumer price inflation data earlier in the week. The annual rate of inflation by this measure rose to 0.7 per cent, from 0.5 per cent over the year to the September quarter, according to the the Australian Bureau of Statistics on Friday. The producer price index for final demand measures the price of final products at the factory door or farm gate so, unlike the consumer price index, does not include trade margins, transport costs or taxes on production.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal on a retest of the trendline resistance area appears to be a good strategy.

 

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

European Currencies at Strategic Levels EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August EUR/USD Analysis: Price Reaches the Level of 1.1000 Market Analysis: EUR/USD Extends Rally While USD/JPY Nosedives USD/JPY, GBP/USD, and EUR/USD Market Analysis: The US Dollar Continues to Fall

Latest articles

Forex Analysis

European Currencies at Strategic Levels

The downward trend in the US currency continues to gain momentum. Thus, the euro/dollar pair yesterday tested important resistance at 1.1000, the pound/dollar pair strengthened to 1.2700, and the usd/cad pair fell below 1.3600.

Indices

Market Analysis: Stock Market Reaction to US GDP News

According to data released yesterday, the US economy is growing at a stronger pace than expected. Thus, US GDP in the 3rd quarter increased by 5.3% in annual terms (an increase of 4.9% was expected). Combined with softening

Cryptocurrencies

BTC/USD Analysis: New High for the Year Shows Bulls Are Indecisive

During November, the price of bitcoin increased by approximately 10% in anticipation of the launch of a bitcoin ETF. But the positive sentiment of crypto investors is seriously overshadowed by news regarding Binance: → Changpeng Zhao resigned as head of Binance.

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.