Silver price
Silver price rebounds today after two days of sharp losses as the tensions between Iran and USA ease. So now investors shift their attention to the fundamental data. The US Department of Labor reported yesterday that initial jobless claims dropped by 9,000 in comparison to the previous week to reach 214,000 topping analyst’s forecasts of 220,000.
Safe haven assets were under selling pressure the last two trading sessions as Wall Street indices hit fresh all-time highs ahead of the upcoming signing ceremony of the Phase One trade deal in Washington between China and USA.
Investors await the critical Nonfarm Payrolls tomorrow for fresh clues on the health of the U.S. economy, and will have a massive impact on the USD. Economists expect a weaker reading tomorrow of 168k, the previous reading was 266k. For the Private Nonfarm Payrolls figure the forecasts are for 146k below the last reading of 254k. The participation rate expected to stabilize around 63.2%.
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Silver price managed to rebound from six-month lows at 16.51 in early December and hot three month-highs as XAGUSD helped by the recent geopolitical tensions in the Middle East. The technical outlook is positive as silver trades above all major daily moving averages.
First resistance for silver will be met at 17.92 the daily high. If XAGUSD pierces above that level will open the way for the next resistance point at 18.19 the high form yesterday’s session. Active supply zone will be met at 18.84 the high from January 8th.
On the downside, immediate support for silver will be met at 17.82 the daily low. Next support stands at 17.56 the 100-day moving average which if breached night cancel the recent bullish momentum. Bears below the 17.56 will be in control and a move down to 17.28 the 50-day moving average would be possible.