Silver Price: Key Levels to Watch as the Dollar’s Downtrend Eases

Summary:

Silver price has eased as the US dollar takes a breather from its downtrend. In today's session, the focus is on the JOLTs job openings data.

Silver price has eased after dropping from Monday’s intraday high of 27.88. This comes as the US dollar catches a breather from its downtrend. The greenback is on a consolidation pattern for the second consecutive session. On Friday, the big NFP miss pushed the dollar index to its lowest level since 26^th February at $90.19. The US non-farm jobs rose by 266,000 in April, which was far from the predicted 978,000.

In today’s session, the focus is on the JOLTs job openings data. Analysts expect a reading of 7.5 million, which is higher than February’s 7.367 million. A better-than-expected figure will be a bearish catalyst for silver price.

At the same time, the market is reacting to the rebounding US treasury yields. On Friday, the benchmark 10-year bond yields dropped to 1.48; its lowest level since 11^th March. However, it has since rebounded to the current 1.61. Its recovery has offered some support to the US dollar, which could push silver price lower.

Silver Price Technical Outlook

Silver price is trading sideways after declining from an intraday high of 27.88 in the previous session. At the time of writing, it was up by 0.11% at 27.33. It is finding support at 27.30 On a 3-hour chart, it is trading between the 14 and 28-day exponential moving averages.

Depending on the US JOLTs job openings data, silver price may have its support level decline to 27.13. If that happens, it may continue to find resistance at 27.50 in the near term. However, a move below 27.00 will invalidate this thesis.