Silver Price Forecast – Silver Continues to Look Toward The FOMC

Silver Markets Technical Analysis

Silver has pulled back just a bit during the early hours on Wednesday only to turn around and show signs of life again. At this point in time, the $30.50 level is an area that a lot of people have been paying attention to on short-term charts, and really at this point in time, I think everybody’s just sitting around waiting to see what the FOMC ends up being.

All things being equal, a pullback does make a certain amount of sense considering that we had been so bullish ahead of time, but traders are out there betting on the idea that Jerome Powell is not only going to cut rates today, but perhaps give them an idea that he’s going to be very aggressive in cutting rates.

If he disappoints, then it’s very likely that we would see the US dollar pick up strength and therefore I think silver would probably get a bit of a pullback. Either way though, the market is likely to continue to be very strong over the longer term anyway. So even if we break down from here, I’m not really looking for an opportunity to short the silver market anytime soon.

The $28.50 level underneath is a bit of a floor in the market. So, it’s really not until we break down below that level that I even start to have thoughts of silver being in serious trouble. Between here and there, we have the $30 level, and we have the 50 day EMA, both that could offer support. Expect volatility, but more likely than not, a pullback is likely to be bought into.

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