FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $30

Kijun-Sen- $30.57

Silver  took support near the 200-4H EMA and held above $30 on the weak US dollar.It hit a high of $30.63 at the time of writing and is currently trading around $30.30.

The US dollar trades weak due to sluggish US  economic data.  The weak US ISM PMI and dismal US ADP jobs data has increased the chance of rate cut by Fed in September. Markets eye US Non-Farm Payroll data this Friday for further direction.

The escalation tension in Middle East also supports Silver at lower levels.

Gold-silver ratio-

Gold/Silver ratio- 77.95. The ratio rebounded from 79.13 to 77.56, well above the historical average of 52. So silver will outperform gold. It is good to buy silver at lower levels compared to gold.

Major trend reversal level -$32.50

It trades above 21 and above 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $29.30 and a break below the target of $28.63/$27.90. On the higher side, immediate resistance is around $30.70 and any breach above targets is $31.30/$32/$32.50.

It is good to sell on rallies around $30.70-75 with SL around $31.20 for TP of $27.