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Silver Price Forecast – Silver Bounces From the 50-Day EMA

Silver Price Forecast Video for 01.02.23

Silver Markets Technical Analysis

Silver has fallen a bit during the trading session on Tuesday, reaching down to the 50-Day EMA. However, we have bounced rather significantly from there, so it does suggest that we are going to stay within the consolidation area that we have been in for a while. This does make a bit of sense, due to the fact that the FOMC meeting kicks off on Tuesday, and the next 2 days will be a matter of sitting around and waiting to see what happens with monetary policy.

At this point, we are continuing to bounce around between the $23.50 level, and the $24.50 level. In between there, it continues to cause a lot of noisy behavior and a lot of back and forth. Ultimately, this is a range bound market that will probably stay that way until we get the press conference from Jerome Powell, or some type of shock announcement from the Federal Reserve. The Federal Reserve has been rather steady in the hawkish tone that we had heard, but Wall Street’s really good about coming up with narratives. Whether or not the Federal Reserve Chairman can talk them back down is a completely different question, so to be interesting to see how this plays out.

If we were to break down below the $23 level, that it’s possible that we could see silver go down to the $22 level. On the other hand, if we were to break above the top of the box on the chart, then we more likely that not have a situation where the market will threaten the crucial $25 level. Keep in mind the $25 is of course a large, round, psychologically significant figure, and therefore will attract a lot of attention.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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