Market Review 27 March 2020

by Constantinos Loizou

  • In today’s Economic Calendar we can expect some volatility in the USD
  • At 12:30 (GMT), the Bureau of Economic Analysis of the USA will announce their Price Index
  • That number represents an average amount of money that consumers spend
  • The result is forecasted to increase to 0.2%, considering that last month was 0.1%
  • At 15:00 (GMT), the University of Michigan (USA) will release the Consumer Sentiment Index
  • The above is an analysis of personal consumer confidence
  • The result is forecasted to decrease to 90 considering that last month was 95.9
  • At 15:00 (GMT), the House of Representatives will vote for the approval of the coronavirus relief bill for $2 trillion, which the Senate passed on Wednesday

 

On the Charts

 

  • On the weekly chart for Silver we can observe that the price, after that sharp fall of the previous 2 weeks, created a low at 11.64
  • That point pushed the price to the upside for gains of almost 15%
  • Now the price is below the previous resistance point (black dashed line) at 14.89, below the blue upward trendline, and below the 10 and 40 weeks Moving Averages, respectively
  • The 10 weeks Moving Average (Purple) crossed to the downside the 40 weeks Moving Average (Red)
  • Momentum is bearish, since both Rate of Change (6 periods) and the MACD are below zero
  • If the price closes below the upward trendline, and the resistance at 14.89, there’s a potential that we may see it declining further to test the 11.64 price level
  • Otherwise, if the price closes above 14.89, there is a possibility to see the 61.8% Fibonacci Retracement level (From 18.91 to 11.64) at 16.15 to be tested