• Silver continues to be very noisy on Friday as we have pulled back a bit despite the fact that interest rates have dropped.

• The 50-day EMA just above continues to offer a little bit of resistance and therefore I think it does make a certain amount of sense that we just hang out in this region.

Quite frankly, I believe this is a market that given enough time probably has to make a bigger decision, but as we head into the weekend it’s difficult to get overly aggressive with anything, let alone a market that is extraordinarily volatile like silver.

Silver Continues to be Noisy

The XAG/USD market pulling back from here could open up the possibility of a test of the $70.00 level. The 200-day EMA sits just below there, and I think it opens up the possibility of even more support. To the upside, we have the $80.00 level, which of course is above the 50-day EMA.

The $80.00 level is essentially fair value from the longer-term consolidation range, which extends all the way to the $90.00 level. That $90.00 level I think is a target eventually, but it’s going to take a while to get there. If we were to break out above there, then I think you start to see silver behave extraordinarily bullish.

There is a lot of demand out there for the little bit of supply that we have for silver, but as long as interest rates remain relatively high, I think a lot of people are going to be very hesitant to buy a lot of silver. Furthermore, as we head into the weekend, we don’t know what the headlines will be, and therefore it makes sense that we have somewhat of a lackluster end.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire