Silver Price Analysis: 78.6% Fibonacci ratio prods XAG/USD bulls at multi-day top below $25.00
- Silver Price seesaws at the highest levels in nine weeks, prints the first daily loss in three.
- Key Fibonacci retracement hurdle, overbought RSI conditions challenge XAG/USD bulls amid cautious markets ahead of US data.
- Silver bears remain off the table unless the quote stays beyond 50-DMA, $24.55 can lure intraday sellers.
Silver Price (XAG/USD) retreats from the highest levels since early May, down 0.11% intraday near $24.85 amid the mid-Asian session on Friday. In doing so, the XAG/USD portrays the market’s anxiety ahead of the US consumer-centric data for July while printing the first daily loss in three.
That said, the overbought RSI (14) line joins the 78.6% Fibonacci retracement level of the XAG/USD’s March-September 2022 downturn to challenge the Silver buyers around $24.95.
Even if the bright metal crosses the $24.95 hurdle, the $25.00 round figure can act as an extra check for the bulls before directing them to the 15-month-old horizontal resistance area surrounding $26.10-20.
Following that, the previous yearly high of near $26.95 and the $27.00 threshold will be in the spotlight.
On the contrary, a horizontal area comprising multiple levels marked since January 2023, around $24.65-55, restricts the short-term downside of the Silver Price.
That said, the XAG/USD bears will need validation from the 50-DMA level of around $23.60 to retake control.
Overall, the Silver Price remains on the bull’s radar even if a short-term pullback is expected.
Silver Price: Daily chart
Trend: Pullback 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.
