Silver rallies to $20.83 after US jobless figure

FXOpen

Silver spiked from $19.63 to $20.28 per ounce on Thursday after disappointing employment figures released by the US labor department, white metal however gave up some gains later on and closed at $20.03.

At the moment of writing in Asian session, precious metal is being traded at $20.03, slightly lower than previous day close. Immediate support is shown around $19.80 to $19.90 region where a number of moving averages including 55 Daily Moving Average (DMA) are sitting in. A break below this support zone may target another major support which is at $19.66. This is the only notable level ahead of $19.31 that is swing low of previous wave. A fall below $19.31 will turn our short to medium term bias about white metal into bearish and next attacking point shall be double bottom support in that case.

Silver rallies to $20.83 after US jobless figure

On upside, immediate resistance can be noted around $20.30, 38% fib level of recent move, and then $20.58 that is swing high of last wave. A break above this resistance zone shall target 20.83 which is 50% fib level as well as a confluence of moving averages as shown in the above chart. A rebound from $20.83 will print Higher High (HH) in bullion price, which will be a confirmation of more upside movement.

Previously a report by the US labor department showed that number of people who filed unemployment claims ticked up last week, thus the actual figure remained above expectations. This triggered a sharp bearish movement in the US dollar that in turn helped Silver and Gold to extend gains.

Earlier this week we saw huge selling pressure in bullion prices after China’s quarterly growth disappointed. Moreover, industrial production also slowed down in Asia’s largest economy. China is the biggest buyer of Silver, thus growth concerns about Asian nation’s economy raised questions about Silver demand.

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.

Latest from Forex Analysis

USD/CAD Rate Reaches Significant Support Level Dollar Declines: How Deep Could the Correction Be? USD/JPY Analysis: Rate Rises Above 159.9 Yen per Dollar SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead?

Latest articles

Forex Analysis

USD/CAD Rate Reaches Significant Support Level

On June 12, we wrote about bearish signs observed on the USD/CAD chart, pointing to the prospect of USD weakening.

Since then, the USD/CAD rate has decreased by approximately 0.75% and has reached an important support level,

Indices

Nasdaq 100 Index Failed to Hold Above 20,000 Points

On 18th June, we reported that the Nasdaq 100 (US Tech 100 mini on FXOpen) market had recorded a historic high by surpassing the psychological level of 20,000.

At that time, we pointed to the upper line of the

Forex Analysis

Dollar Declines: How Deep Could the Correction Be?

By the end of last week, the American currency traded rather mixed:

  • The USD/JPY currency pair strengthened by more than 200 pips and almost tested the significant resistance level at 160.00.
  • The USD/CAD pair failed to break
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.