(MENAFN- Daily Forex) The silver market initially rallied during the Friday trading session, hitting the 50-Day Exponential Moving Average early in the session. However, a slight pullback is expected at this juncture, prompting an evaluation of whether the market can break out from the squeeze between the 50-Day and the 200-Day EMAs. Conversely, if we manage to surge above the 50-Day ema , we could potentially target the $25 level, a key psychologically significant figure, and a zone where the market has previously experienced substantial support.
Advertisement take advantage of today's market opportunities start trading now A break below the lower end of the Friday candlestick could precipitate a fall towards the $23 mark, roughly where the 200-Day EMA currently hovers. The 200-Day EMA appears to be fluctuating, potentially providing a floor for the market. A drop through the 200-Day EMA could potentially trigger a rapid unraveling of silver prices.In such a downward scenario, the initial target would be the 61.8% Fibonacci retracement level around the $22.30 area, followed by a potential decline to the pivotal and psychologically significant $20 mark. Although this is not an immediate likelihood, a sudden influx into the US dollar could potentially incite such a sell-off. I t's important to remember that silver is generally more volatile than gold, so if precious metals begin a downward trend, shorting silver may be a quicker response than shorting gold.Choppiness AheadAlternatively, if we witness an upward momentum, the ascent to the $25 level could be swift and robust. The upcoming days are expected to offer more clarity on market directions. At present, it appears that the bullish momentum witnessed during the week may have been somewhat exhausted. This makes sense, and even though the market is pulling back, it doesn't mean that we must break down, just that it's a possibility. The market will probably be choppy soon, and therefore you need to be careful.TLDR: the silver market is positioned at a crucial juncture, where the next few days could be decisive in shaping its future trajectory. The relationship between the 50-Day and 200-Day EMAs, coupled with potential price points of $25 and $23, will likely guide the market's direction. As always, investors need to maintain vigilance and be prepared to respond to these shifts in a dynamic and volatile market.Ready to trade our forex daily forecast ? We've shortlisted the best forex broker list for you to check out.
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