Silver Tests Major Resistance
03 March 2022
As the turmoil from Ukraine/Russia conflict continues to hit the markets, commodities are bid, pushing most of them to multi-month highs. Silver is no exception.
Earlier in the week, silver managed to comfortably break above the key 200-day moving average (the green line), which is currently the significant medium-term support for silver. As a result, dips are expected to be bought as long as it trades above the 200-day average.
The next target for bulls could be near 26.40 USD, where the summer 2021 consolidation zone is located.
On the other hand, a failure to defend the 200-DMA at 24.20 USD could lead to a decline toward 23.40, where the 50-day average is.
Sentiment remains on the edge till there is a peaceful resolution between Russia and Ukraine. Still, so far, the US markets trade like it is an isolated conflict in a developing country, such as previous wars in Afghanistan, Yemen, Libya, Iraq, etc.
Additionally, commodities are defying the US dollar strength (as the EURUSD pair dropped toward 1.10 for the first time since the COVID global lockdown), likely supporting the rally further.