XAG/USD outlook: Silver is consolidating above new multi-month low
XAG/USD
Silver price edged higher early Tuesday, as bears take a breather after strong acceleration in past two days (down almost 7%) hit the lowest in over six months.
The US dollar rose further and remains supported by signals that the Fed is likely to keep restrictive monetary policy for some time, as the US economy remains surprisingly resilient despite strong negative impact from high borrowing cost.
Bears found a temporary footstep at $20.82 (61.8% retracement of $17.54/$26.12 rally) with partial profit-taking to push the price higher to offer better selling opportunities, as traders await release of the first from three key reports from US labor sector - JOLTS job openings (Aug f/c 8.80M vs July 8.82M) with release at /above consensus to provide fresh positive signals for dollar.
Firm break of cracked support at $20.82 to expose supports at $20.28 (200MMA); $20 (psychological) and $19.88 (early March higher base). Broken Fibo 50% ($21.83) should ideally cap, with extended upticks not to exceed former range floor ($22.10/20) to keep bears in play.
Res: 21.83; 22.20; 22.56; 22.84.
Sup: 20.82; 20.68; 20.28; 20.00.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
