Silver On Watch With Bearish Sentiment Signal

Bearish SignalThe Tickmill Daily Sentiment analysis has given a bearish signal in Silver which makes it an instrument worth watching this week. In 80% of the last 10 occurrences, price has moved lower with 9 days.  Silver prices have been under steady pressure over recent months, correcting lower from the April highs. A resurgence in hawkish Fed expectations has been a major headwind for silver with futures prices sinking by over 15% from the YTD highs.Fed ExpectationsNear-term, the prospect of the Fed hiking rates this month while signalling further tightening to come, looks likely to drive silver prices lower. With wages seen rising last month, upside inflationary pressures in the US remain a key issue, despite job growth falling last month. Traders will be monitoring incoming US data this week with any fresh USD strength likely to weigh on silver prices.US CPI On WatchUS CPI on Wednesday will be the main driver of silver prices this week with plenty of USD volatility expected around the release. If stickiness is seen around prior levels, or any fresh upside is seen, silver prices should fall sharply as USD rallies. However, if inflation is seen falling sharply again, this might push back against more aggressive tightening calls for the Fed, allowing silver to rally near-term.Technical ViewsSilverThe market is currently sitting on support at the 22.3205 level, just ahead of the bull channel lows. This is a key area for the market which, if broken, opens the way to deeper downside with 20.6398 the next support to note. To the topside, 24.0073 is the main resistance level to note which, if broken, should encourage fresh bullish momentum.