SILVER Steadies Ahead of US NFP08 May, 2015 by Aayush Jindal in Market Analysis
- The US dollar remains elevated versus a few major currencies, excluding the British Pound.
- Chinese Trade Balance released by the General Administration of Customs of the People’s Republic of China was on the softer side and weighed on the risk sentiment.
- FX market awaits the US nonfarm payrolls and the unemployment report, which will be released by the US Department of Labor today.
SILVER – Technical Analysis
SILVER prices moved lower Intraday, as the US dollar gained bids during the past couple of sessions. It is forming a solid breakout structure ahead of a very important release in the US. There is a contracting triangle formed along with a bearish trend line on the 4-hour chart.
Currently, SILVER is confined within a range and trading between 100 and 200 simple moving averages (4H). On the upside, there is a major barrier formed around $16.45. The 200 SMA, 50% Fib retracement level of the last drop from $16.75 and a bearish trend line are coinciding around the mentioned level. A break above the same might expose a test of $16.80 in the near term.
On the downside, 200 SMA is positioned around the triangle support area. So, a break and close below $16.15 could ignite more losses in SILVER.
Chinese Trade Balance
Earlier during the Asian session, the Chinese Trade Balance i.e. a balance between exports and imports of total goods and services was released by the General Administration of Customs of the People’s Republic of China.
The outcome was weak, as the Chinese exports fell 6.2% whereas the market was expecting it to increase by 0.9%. Similarly, imports decreased by 16.1% in April 2015, compared to the same month a year ago whereas the market was expecting it be around -8.4%.
Overall, the trade surplus was 34.13B in April 2015, compared to the forecast of 39.45B. This caused a minor downside reaction in GOLD and SILVER.
Today, there is a major market moving event scheduled during the American session, as the US nonfarm payrolls and the unemployment report will be released by the US Department of Labor. The forecast is of 224K in April 2015, compared to the last month’s 126K. A weaker-than-expected data might weigh on the US dollar moving ahead.