Silver Price Outlook – Silver Continues to Trade in the Same Range

Silver Technical Analysis

Silver fell in the early hours of Wednesday as we have tested the crucial $33 level again. This is an area that of course has been like a magnet for price for some time. And it’s also in the middle of this little consolidation area that I have barked between $32 on the bottom and $34 on the top.

I think we are stuck there, at least until we can get some type of idea as to what the Federal Reserve may or may not do going forward. Ultimately, I think this is a situation where the US dollar will continue to have a fairly outsized influence on silver. But I also recognize that the reaction of the dollar to the FOMC press conference is probably what really kicks this off.

Talks between the United States and China are seemingly a thing now, and that, of course, will help the idea of industrial demand for silver, but it takes away that precious metal trade as well. So, I expect a lot of mixed emotions in this market. So therefore, it makes sense that we are consolidating. If we can break above the $34 level, then I think we will go looking to the $35.25 level and if we break down below the $32 level, we’ll be looking at the 200-day EMA, trying to discern whether or not there is support there. This is an area that could define the trend if we react.

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