Silver inched lower on Friday, decreasing the price of white metal to less than $17.75 an ounce following the release of some key economic news. The technical bias remains bullish because of a higher high in the ongoing upside move.
As of this writing, the precious metal is being traded near $17.57 an ounce. A support can be noted around $17.36, the trendline support area ahead of $17.00, the psychological number and then $15.62, the swing low of the last major downside move as demonstrated in the given below daily chart.
On the upside, a hurdle can be noted around $17.86, the 50% fib level ahead of $19.00, the confluence of psychological number as well as swing high of the last major upside rally. A break and daily closing above the $19.00 resistance area shall incite renewed buying interest, validating a move towards $25.00 an ounce. The technical bias shall remain bullish as long as the $15.62 support area is intact.
RBA Monetary Policy Statement
It is highly unlikely that Australia’s economy entered a recession over the second half of last year, the Reserve Bank has concluded in its latest economic update. However, the bank also used its latest quarterly Statement on Monetary Policy to warn that “a widespread downturn in the housing market” is a “low-probability downside risk”. Before looking far forward in its projections for the next two years, the RBA had to acknowledge errors of the past, with the September quarter’s 0.5 per cent economic contraction pulling all its near-term GDP forecasts around 1-percentage-point lower.
Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy.