Like gold, silver continued to retreat from its highs in a safe-haven environment last week, losing the key 18 levels to as low as $17.62, a 1.7 percent drop that briefly approached the key 200-day moving average support.
U.S. President Donald Trump on Tuesday expressed cautious optimism about trade talks with Europe but kept the threat of new tariffs on cars on the table. US President Donald Trump has said he will seriously consider imposing tariffs on cars imported from Europe if a fair deal is not reached. But he later said he wanted to reach a deal with the eu on tariffs on cars.
As for the epidemic situation in China, near the early morning of January 22, the national health commission issued an article saying that experts concluded that the case was mainly related to Wuhan and that there had been human-to-human transmission and infection among medical workers, with a certain extent of community transmission. The source of the new coronavirus infection has not yet been found, the transmission route of the epidemic has not yet been fully understood, there is the possibility of virus mutation, there is the risk of further spread of the epidemic.
As for why the demand for silver has bucked the trend? Some analysts pointed out that on the one hand, profit-taking led to the correction, on the other hand, the main palladium crash led to the decline of precious metals.
In the current trading session, the world health organization’s emergency team will meet in Geneva on Wednesday (January 22) to determine whether the outbreak of pneumonia in Wuhan should be designated as a “public health emergency of international concern,” keeping the market focused.
On the daily chart, the dollar index remains extremely range-bound, currently trading around 97.70, before bottoming out to close barely flat. In terms of technical indicators, the MACD red momentum column was basically stable, the RSI index was slightly above the 50 levels, and the KDJ index hit the overbought level.
On the four-hour chart, the dollar index rose sharply to around 97.73 after hitting a previous low of 97.08, before retreating slightly to briefly below the 50-session average and now back above all averages. From the technical indicators, the MACD red kinetic energy column gradually weakened, the RSI index traded slightly above 50, and the KD index rebounded upward from the level of 50.
On the daily chart, silver fell through the 18 levels overnight, briefly approaching its 200-day moving average of $17.57, and is now under pressure, trading around $17.70. According to the technical indicators, the MACD green kinetic energy column is expanding gradually, the RSI index is hovering around the level of 50, and the KD index is approaching the oversold level downward.
On the 4-hour chart, silver has fallen sharply from its high to a low of $17.62 and has fallen below all averages. From the perspective of technical indicators, MACD green kinetic energy column expanded rapidly, the RSI index approached the oversold level downward, and the KD index approached the oversold level downward.