Silver Price Analysis: 50-DMA probes XAG/USD bears on the way to $22.80
- Silver bears take a breather following the heaviest fall in five weeks.
- Pre-Fed trading lull allows 50-DMA to question further downside.
- Clear break of a multi-day-old support line, bearish MACD favor sellers.
Silver (XAG/USD) struggles to defend the bounce off a three-week low, recently sidelined around $23.50, during Wednesday’s Asian session.
That said, the 50-DMA level surrounding $23.40 probes the bright metal’s immediate downside amid cautious sentiment ahead of the US Federal Reserve (Fed) meeting.
Even so, a successful break of an ascending trend line from October 29 and a bearish cross by the MACD line keep silver sellers hopeful to visit a horizontal area comprising multiple levels marked since August 20, around $22.90-80.
It should be noted, however, that the metal’s weakness past $22.80 may find multiple supports near above $22.00, a break of which will direct the quote towards the yearly bottom surrounding $21.42.
Meanwhile, corrective pullback needs to cross the support-turned-resistance line, at $24.05 by the press time, to recall the buyers.
Following that, October’s high of $24.82 and September’s peak near $24.85 will be in focus.
Silver: Daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
