FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-Hour chart)

Tenken-Sen- $27.63

Kijun-Sen- $27.79

Silver has lost more than $1 yesterday due to board–based US dollar buying. The upbeat economic data and comments from Fed members on bond-buying tapering are supporting the US dollar at lower levels. The US private sector has added 978000 jobs in May much better than the forecast of 650K. The number of people who have filed for unemployment benefits declined to 385K for the week ended May 28 vs an estimate of 395K. The US dollar is holding above 90.50 levels, a jump till 91. The US 10- year yield surged more than 3% from a low of 1.584%. XAGUS hits an intraday high of $27.43 and is currently trading around $27.382.

Technically, silver's significant support is around $27, violation below will drag the pair down to $26.60/$26. Significant bearishness can be seen only if it breaks below $24.90.The near-term resistance is at $27.60, any surge past targets of $28/28.25/$28.75 (the previous week high). Major bullish continuation only if it breaks $30.

Indicator (4-hour chart)

CAM indicator –Bearish

 Directional movement index – Bearish

It is good to sell on rallies around $27.78-80 with SL around $28.20 for TP of $25.