As per the prior analysis, Silver Price Analysis: Bearish W-formation could draw in the bid, the price indeed fell to the projected targetted area.
More on that below.
Meanwhile, from a fundamental basis, the market’s focus was on the Federal Reserve’s Jerome Powell.
In a nutshell, the dollar recovered into the event and was unnerved from a status quo delivery from the Fed’s chair.
The bond market was relieved that the Fed will continue its purchase and the stock market recovered on the lower for the longer rates theme.
Meanwhile, the US dollar is very short in positioning.
Should the narrative flip towards the US economic outperformance, given a faster vaccine roll-out and the possibility of fuller employment, than say that of Europe, it could be enough to see a seismic shift in positioning, regardless of fiscal stimulus.
Therefore, even though silver might out-do its sister currency, gold, due to its industrial qualities, a faster pace of global economic recovery and demand for the metal, US dollar headwinds could still weigh.
Meanwhile, as per the prior analysis, the price has now fallen to where a period of consolidation would be expected before it breaks out of the boundaries of support and resistance.
Moving on to the 4-hour chart, the price is bound by the box: