MCX Silver prices witnessed a speculative increase. Silver futures bounce back from day’s low 68613 and are currently trading at 69905.The prices found support after the dollar saw some weakness from the day’s high 102.1850 and trading at 101.883 against its major counterpart.
Dollar weakened slightly against the euro ahead of Wednesday’s eagerly awaited Federal Reserve policy decision, with investors hoping the U.S. central bank will signal an end to interest rate tightening cycle.
The euro, meanwhile, was barely moved by data showing inflation in the bloc had eased for a third straight month in January.
After a series of jumbo rate increases in 2022 to tame inflation, the market expects the Fed benchmark interest rate to be raised by a quarter of a percentage point to 4.75%. That would be the smallest increase since the central bank began raising rates 10 months ago.
Technical View- on above weekly chart, SILVER future is trading on a verge of massive resistance. A break above 70080 could lead to abrupt bullish momentum in Silver prices.
In case prices break above 70080 levels, then we could expect a bullish rally towards the next resistance of 70550-70850. Else, any dip towards 68900-68800 could attract near term buying activities with stop loss below 67650.
On the downside, Crucial support is seen at 66750 and a break below only could expect to test next support 65850-65500.
Fresh buy above 70080 target 70550-70850. Stop loss below 69755.