Silver Threatens Downward Slope Channel Before US Durable Goods News


Silver nosedived broadly yesterday by more than 60 cents to less than $20.30 an ounce. The precious metal however found a major support around the key level on Friday ahead of US Durable Goods Orders news. The long-term sentiment remains bullish due to higher high in the recent upside rally.

Technical Analysis

As of this writing, the white metal is being traded around $20.43 an ounce. A huge support can be noted around $20.30, the confluence of 38.2% fib level, lower trendline and 200 Simple Moving Average (SMA) as demonstrated in the following chart. A break and daily closing below the $20.30 support area could incite a renewed selling pressure, validating a dip below the $20.00 handle.


On the upside, the precious metal is expected to face a hurdle near $20.86, the confluence of trendline resistance as well as 50% fib level. A break and daily closing above the channel resistance could push the white metal into stronger bullish momentum, opening doors for the $21.57 resistance area.

US Durable Goods Data

The Census Bureau of the US is due to release the durable goods report today. According to the median projection of different analysts, the US manufacturers received 0.5% more durable goods orders in June as compared to -1.0% in the month before. Generally speaking, higher durable goods orders are seen as positive for the US Dollar (USD) hence a better than expected actual reading will be considered bearish for the price of silver.


Keeping in view the overall technical and fundamental outlook, buying or selling the precious metal on a breakout through the downward slope channel appears to be a good strategy in short to medium term. Not to mention, the long term bias will remain bullish as far as the $18.63 support area is intact. 

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

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data 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

Latest articles

Forex PAMM

Overview of FXOpen's Best-performing PAMM Accounts of November 2023

According to the results of November, we can single out the most promising PAMM providers for investment and monitoring for the future. First of all, one should consider accounts with good profitability and low drawdowns. In this PAMM-review on the

Forex Analysis

EUR/USD, GBP/USD, and USD/JPY Analysis: Dollar on the Rise amid Good US Employment Data

The US Federal Reserve will publish its interest rate decision on Wednesday, December 13th. The American regulator is not expected to take steps towards tightening or easing monetary policy, given the strong November labour market report published last Friday. Thus,


Crude Oil Ends Freefall, but Is It Back in the Black?

In the early stretch of December, the WTI Crude Oil market experienced a sudden and substantial downturn, sending shockwaves through the financial landscape. From a robust $77.71 per barrel on November 29, the value plunged to just over $69.

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.