Silver Sitting on Key Support Ahead of US PMIs

Silver Under PressureThe latest round of US PMI readings will be in focus today. An uptick in USD has put fresh pressure on metals with silver prices now down around 10% from the month’s highs. Powell’s reaffirmation this week of the Fed’s outlook at the recent FOCM has seen market sentiment flipping back in favour of expecting further hikes from the Fed in coming months, which has given the Dollar a fresh boost. While this remains the case, metals look likely to remain under pressure near-term.Market ForecastsLooking ahead today, factory and non-factory PMIs will be the key driver for metals. If we see any fresh upside this will likely reinforce the view that the Fed has room to tighten further near-term. In terms of numbers for today, the market is looking for services PMI at 53.9 from 54.9 and manufacturing PMI at 48.6 from 48.4. In terms of the biggest market reaction, this would likely come from manufacturing crossing back into positive territory. Similarly, it would likely take quite a hefty undershoot to stall the current USD move.Technical ViewsSilverThe failure at the 24.0073 level has seen the market reversing sharply lower. Price has now fallen back under the bearish trend line and is testing the 22.3205 level. This is a key support area for silver which, if broken, opens the way for a test of the 20.6398 level next, in line with bearish momentum studies readings.