Precious metals are trading lower today with silver being top laggard. Price of silver drops over 1% today as USD strengthens all across the board. Precious metals may become more volatile in the evening when FOMC announces its monetary policy decision at 7:00 pm BST. Press conference of Chairman Powell at 7:30 pm BST may be an even greater mover for the markets.
Taking a look at SILVER at D1 interval, we can see that price pulls back after a failed attempt of breaking above the resistance zone ranging around $26.40 handle. A point to note is that recent price performance hints that an inverse head and shoulders pattern may be building up. The aforementioned $26.40 level looks to be a neckline. In case SILVER pulls back to the $25 area and recovers from there, the right shoulder would be painted. Potential target of this pattern can be found in the $29.00 area. On the other hand, one should keep in mind that if SILVER recovers from today's decline and breaks above the $26.40 zone, the inverse head and shoulders pattern would be invalidated.
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Source: xStation5
