Silver Defends Bullish Trendline

At the time of writing, silver traded 1% higher, trying to jump above the 23 USD level.

Later in the day, the US ADP employment report is due. According to this methodology, the US economy is seen creating only 207,000 new jobs in January, down sharply from 807,000 in December. So that could be another bearish impetus for the greenback.

Additionally, it looks like the USD and US yields have topped, at least from the short-term perspective, possibly helping silver to recover some of its post FOMC losses.

Silver is now testing the 50-day moving average at 22.85 USD (the purple line). Judging from the current bullish momentum, that resistance will not hold for long, helping to push the price above 23 USD again. The next target will likely be at previous highs near 23.50 USD.

Alternatively, if silver drops below the short-term trend line, with the support at 22.50 USD, we could see a decline toward last week's lows near 22.15 USD. The key demand zone stands at 21.50 USD.