Silver dropped on Wednesday as it lost positive momentum, noting that the price is moving beneath the simple moving average 9 on the four-hour time frame.

Scenario 1:

Currently, silver is trading near the lower line of the bullish channel, where a sustained move below it may dump prices to the first support at $37.61. It should be noted that if the price holds beneath the aforesaid level, it may resume retreat towards the second support level at $37.20.

Scenario 2:

If silver gains positive momentum, it may retest the pivot point at $38.42, noting that settling above it could help prices to rise near resistance levels of $38.90 then $39.30.

Top News:

Investors are awaiting the interest rate decision by the U.S. Federal Reserve at 18:00 GMT. Analysts expect the Fed to hold rates at 4.5%.