Silver also rises to reach the 50-day SMA а $ 15.50. This is an area that attracts much attention not only because of the round figure (15.50), but also because of the moving averages (50 and 200) that are close to that level. Most likely, the price will be trade in broad consolidation between $ 15 and $ 16, levels of extremely strong support and resistance before a breakthrough which will give us a signal for the further direction of the precious metal.
If the price breakthrough $ 15.50, the market is likely to push it to $ 16. Alternatively, if we step back from here, we can reach $ 15. Simply put, if a close above $ 15.50 even on a H1 chart, a number of buy orders are likely to be triggered, which will give buyers more control. Take a look at the US Dollar Index, or the EUR/USD pair will serve as a nice proxy as to how strong or weak the US dollar is. If it soften in value, silver is likely to keep going up.
Alternatively, if the US dollar gets retreated, then Silver and Gold will most likely will retrace lower. We have seen a nice move over the last few days, so it's possible a correction before buyers take the situation under control again.
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