Today’s hot jobs report propelled the dollar Index to new heights, showcasing a bullish key reversal and engulfing pattern, indicating strong market momentum. Meanwhile, March silver faced pressure, inversely reacting to the dollar’s rally, with technical analysis suggesting potential support levels amidst market fluctuations.
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Good afternoon, traders. This is Matthew Bresnahan, Market Strategist with Blue Line Futures, with today’s edition of the 2-minute drill where we are going to be diving into the March dollar Index Futures and March silver. So let’s get this clock rolling here. All right, today white hot jobs report this morning sent the dollar Index skyrocketing. Now looking at it here, this is both a bullish key reversal and a bullish engulfing pattern as we can see. You know, the day’s low is lower than yesterday’s close and yesterday’s low, and the body of the candle engulfs the entire trading range of the prior day.
Now looking at it, you know, we’ve made continuous new highs, you know, over the course of the new year so far after having a very rare technical pattern here in an island reversal. But if you look at it, you know, here, you know, we have made new highs, you know, each of the last few days or each of the last few weeks, but we are seeing a little bit of divergence on the standard 14-day RSI. Now it does look like we have had a little bit of a hard time getting out back above, you know, 104 here. We’ve broken down there the last couple of times we’ve tested it, but, you know, we should be keen on, you know, further economic data coming out and what rates are doing.
Now flipping the page over to March silver, now looking at it here, you know, the silver prices typically move in the opposite direction of the dollar Index. So seeing prices or seeing silver under significant pressure today was not all that surprising. But if you look at it here, okay, well, if the dollar Index continues to rally, where could we find some support? You know, looking at it here, the 78.6% retracement around 22.27 is probably your first designation for like a nice line in the sand there. But, you know, looking at it, you know, one of the tell signs that we were ready for a corrective move lower is the length of the wicks on these candles here. You know, seeing each one extend lower and lower is an indication that bulls were losing a little bit of their foothold on the market and that bears were starting to drive the price action. Now, because the real body is green, it means we traded all the way down to the low here but managed to close all the way towards the top of the candle. You know, holding above 22 or 23 has been, you know, a bit of a tenuous situation each of the last days of this week, and it really has become, you know, a pretty important line in the sand if we’re going to see higher silver prices. We are going to need to see the dollar Index come back lower here. Thank you so much for watching, and have a great weekend.