Silver markets have rallied significantly during the trading session on Friday as the jobs number in America came out much weaker than anticipated. That being the case, I anticipate that this market will continue to move based upon the US dollar as it has on Friday. The US dollar obviously got pummeled after that news, as the Federal Reserve is nowhere near being able to tighten monetary policy. The question now is whether or not industrial demand will come back into the picture, because that obviously has a major influence on what we do next.
SILVER Video 06.09.21
The 200 day EMA currently sits at the $25.16 level, so I think that we are probably going to run into a bit of resistance in the short term. Nonetheless, I think it is only a matter of time before we see traders coming into the market to offer a bit of resistance. If we can break above the 200 day EMA on a daily close, then it is likely that this market goes much higher. Regardless, this is a market that I think will have some impulsivity left in it, because candlesticks like this very rarely go without seeing some type of follow-through.
All of that being said, we are still technically in a downtrend so you have to respect that, but at this point in time it certainly looks like it would be difficult to short this market with this type of momentum jumping in on Friday. Silver does tend to be rather volatile, so you of course have to be very cautious about that as well. Position sizing will be crucial in this market.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
