During yesterday’s trades the price of silver rose up to the level of 16.40 USD per ounce. The rise was driven by weakening in the USD amid negative macro-economic statistics in the US manufacturing sector.
The production index - Empire Manufacturing has dropped to –1.2 from 6.9 in March, while analysts expected it to be at 7.0%. Volume of industrial production fell by 0.6% versus expectations of 0.2%. Utilization of production capacities was at the level of 78.4% against the forecast of 78.7%. In today’s trading session silver continues to grow. At the Asian session the price has tested the level of 16.48. Today, some US news will become known, including labor market and construction sector. Experts expect that statistics are likely to be negative, which will trigger the decline in the USD.
Support and resistance
Resistance levels: 16.48 (Fibonacci retracement of 38.2%), 16.65 (Fibonacci retracement of 50%, middle line of Bollinger bands indicator), 16.80 (Fibonacci retracement of 61.8%).
Support levels: 16.31 (Asian session lows), 16.00 (bottom line of Bollinger bands indicator), 15.81 (lows of 19 March).
Buy positions are recommended above the level of 16.50 with the first target of 16.65 and the next one of 16.80. It also makes sense to open short positions below the level of 16.35 with the targets of 16.05 and 15.80.