Silver MCX Today Tips Rocking Hit Full Target, Paid Member Mint Money. The dollar steadied as upbeat figures on U.S. employment and lackluster economic data from China put the brakes on a sell down of the world’s reserve currency.
Official data showed that China’s industrial production grew 4.8 percent on a yearly basis in July, the same rate of growth as seen in June and weaker than the expected rise of 5.1 percent.
The euro area economy contracted at a record pace in the second quarter, as initially estimated, due to the containment measures taken by member countries to control the spread of the coronavirus.
China’s retail sales slipped in July, dashing expectations for a modest rise, as consumers in the world’s second-largest economy failed to shake off wariness about the coronavirus, while the factory sector’s recovery struggled to pick up pace.
China’s recovery had been gaining momentum after the pandemic paralysed huge swathes of the economy as pent-up demand, government stimulus and surprisingly resilient exports revived activity.
However, July data from the National Bureau of Statistics on Friday showed weaker-than-expected year-on-year industrial output growth and retail sales extending declines into a seventh straight month.
Silver spot is currently trying to settle above $27.00. The nearest resistance for silver is located at $27.75. Silver has already made several attempts to settle above this resistance level but these attempts were not successful.
In case silver manages to get above $27.75, it will gain more upside momentum and head towards the recent highs at $29.85. As I wrote before, silver will also face resistance below $29.85 but the exact level is not clear due to the speed of the recent moves which left huge gaps between major levels.
On the support side, the nearest support for silver is still located at $26.20, the high point of silver’s rally in July. Silver has recently tried to settle below this level but quickly returned back above $26.20.
In case silver moves below the support at $26.20, it will head to the major support level at the 20 EMA at $25.15.
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