FxWirePro: Silver break key resistance on strong USD; likely to test support below $15

White metal to decline further,

• Broad-based strength in USD led to a sharp selloff in the precious metal group. Palladium is leading the drop as it is down almost 6 percent so far, while gold is down 1.4 percent and silver down 1.55 percent.
• Today’s selloff has opened up the possibility of further decline as the price has cleared a key supporting trend line, which has been in place since November last year.

The chart is a point and figure chart prepared in FXCM’s Market-scope 2.0, which clearly shows the break.

Trade idea:

• The trend line break opens the possibility of a further decline and testing of the next support around $14.8 area. Though $14.8 support area is strong, we expect the momentum to pus silver towards $14.5-6 area.