Listen to the latest market mood for the XAGUSD pair.
The outlook for silver remains fundamentally bullish. World interest rates are low and look set to remain that way. QE programmes from central banks around the world are devaluing currencies. Silver still has a long way to catch up to its previous all-time highs, so buyers will still be attracted to silver compared to gold which has already taken out its all-time highs.
The recent falls in the precious metal have been in keeping with a pullback within a wider bull trend. Due to the huge ranges involved in trying to set stops on this market one strategy that traders will be using is taking breaks of trend lines. If price can climb and stay above the trend line it tells you that bulls are in control.
Expect silver buyers on breakout of descending trend line.
Trade Risks: If we see a swift return to central banks raising their interest rates that will invalidate this outlook.