Silver consolidating below strong resistance


Silver managed to stage a nice bullish reversal on Wednesday, which might push the price further higher today. During the Frankfurt session, it was seen half a percent higher on the day, changing hands at around 17.36 USD.

The price is pushing on the vital resistance of the short-term bearish trend line, currently near 17.40 USD. If this level is taken out, the short-term trend could change back to bullish, with the first target for bulls at the current swing highs near 17.60 USD. Silver needs to conquer this barrier to move higher, with the next level to watch at 18.00 USD.

Alternatively, the intraday support seems to bear 17.20, but the central area of interest remains near 16.80 USD, where the metal has stopped a couple of times already. As long as silver remains above this level, the medium-term outlook still seems bullish. 

The greenback is starting to crack as the EURUSD pair is about to push above the 200-day moving average at 1.1020, which could be a strong bullish signal for dollar bears. Weakening US dollar might support precious metals, such as silver and gold. 

In addition, the Fed is printing massive amounts of money, which will most likely cause higher inflation and that is also positive for metals. 
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