Despite the US Dollar's massive surge against the Euro and other trading pairs during Wednesday's trading session, precious metals held steady and managed a modestly higher close across the sector. This bodes very well for the prospects of an eventual resumption of the bull market, as investors establish confidence that major currency fluctuations will not reverse the long term trend.
Silver futures remained near the upper end of the recent trading range throughout the Dollar rise, suggesting a possible upside breakout in the near future. The market formed a Triangle chart pattern on the short term 15-minute chart, with the current price holding just beneath resistance at $35.80 per ounce.
A rally above this level will trigger an early breakout from the pattern, which could have considerable follow-through given the relative strength of all the metals as much of the rest of the commodities complex slides.
Failure to overcome the resistance at the top of the Triangle chart pattern would set up a likely retest of the support at $35.20 per ounce, with a continuation of range-bound trading inside this formation until the price gets closer to the apex.
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