Silver Plunges After RBA’s Monetary Policy Statement

FXOpen

Silver inched lower on Friday, decreasing the price of white metal to less than $17.75 an ounce following the release of some key economic news. The technical bias remains bullish because of a higher high in the ongoing upside move.

Technical Analysis

As of this writing, the precious metal is being traded near $17.57 an ounce. A support can be noted around $17.36, the trendline support area ahead of $17.00, 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 Plunges After RBA’s Monetary Policy Statement

On the upside, a hurdle can be noted around $17.86, the 50% fib level ahead of $19.00, the confluence of psychological number as well as swing high of the last major upside rally. A break and daily closing above the $19.00 resistance area shall incite renewed buying interest, validating a move towards $25.00 an ounce. The technical bias shall remain bullish as long as the $15.62 support area is intact.

RBA Monetary Policy Statement

It is highly unlikely that Australia’s economy entered a recession over the second half of last year, the Reserve Bank has concluded in its latest economic update. However, the bank also used its latest quarterly Statement on Monetary Policy to warn that “a widespread downturn in the housing market” is a “low-probability downside risk”. Before looking far forward in its projections for the next two years, the RBA had to acknowledge errors of the past, with the September quarter’s 0.5 per cent economic contraction pulling all its near-term GDP forecasts around 1-percentage-point lower.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy.

 

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

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

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

Market Volatility Continues to Rise
Forex Analysis

Market Volatility Continues to Rise

Amid global economic instability and escalating tariff tensions, the EUR/USD and GBP/USD currency pairs are showing strong growth. Following statements by Donald Trump regarding the potential dismissal of Federal Reserve Chair Jerome Powell, pressure on the US dollar

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.