XAG / USD remains at around $ 22.70 after a dismal Nonfarm Payrolls report
- XAG / USD is stable as the 10-year US T-bond yield is stuck at 1.61%.
- The US dollar index appears to close above 94.00 for the second straight week.
Silver (XAG / USD) is up during the New York session, rising 0.69% and trading at $ 22.76 at the time of writing. Price movement throughout the US trading session was sharp after the US Bureau of Labor Statistics (BLS) released the US Nonfarm Payrolls Report, which found an increase of just 194,000 jobs, less than analysts’ forecast of 500,000.
The employment figure shows that there is still a lull in the labor market, but it is positive that the unemployment rate has fallen from 5.1% to 4.8%. Furthermore, the investor reaction appears to be in line with what US Federal Reserve Chairman Jerome Powell said at the September meeting. He said he needed a reasonably good job report to begin the bond tapering process.
The risk appetite reflected the market reaction. The US stock indices fell instead of rising, the 10-year US T-bond rose 1.61%, and the US dollar stayed at 94.11 and lost 0.11% against a basket of six competitors.
XAG / USD Price Prediction: Technical Outlook
1 hour chart
XAG / USD is trading above the simple moving averages, suggesting that silver is on an upward trend.
Price movement as the September nonfarm payroll hit the wires bounced aggressively towards the new daily high of $ 23.19, but when the report was analyzed the knee-jerk reaction faded and fell to known levels around the 50-SMA $ 22.63 back
For silver buyers to continue the uptrend, they need to climb above $ 23.00. in this case the first supply zone would be the October 8th high at $ 23.19. A break in the latter would reveal the September 14 swing lows at $ 23.50, followed by the psychological $ 24.00.
On the flip side, in order for XAG / USD sellers to regain control, they must reclaim the 200 SMA at $ 22.36. Once that is achieved, it is expected to decline towards 2021 lows of around $ 21.40. That said, there would be some key demand zones in the way, like the psychological round number $ 22.00 followed by $ 21.79.
The Relative Strength Index (RSI) stands at 50 and is targeting slightly high, suggesting a short-term upward trend that could open the door for another uptrend.