Silver Price Analysis: Bulls step in and help the XAG/USD clear daily losses

XAG/USD found support at a daily low of $22.20, then recovered towards $22.55, trading flat.
US retail sales came in higher than expected.
Despite robust data, the USD consolidates and limits Silver’s losses.

Patricio Martín FXStreet

On Tuesday, the XAG/USD cleared daily gains and its losses were limited by the USD consolidating its previous day’s gains. Focus now shifts to the July meeting's Federal Open Market Committee (FOMC) minutes.

US Retail Sales showed the US economy is holding firm. The headline Sales rose by 0.7% MoM, higher than the 0.4% expected, while the ones excluding the Automobile sector also came in strong and came in at 1% vs the 0.4% expected.

Regarding the next Federal Reserve (Fed) meeting, there's a prevailing market expectation of a no hike in September. However, the chances of a 25 basis point adjustment in November reach a peak of around 40%. That said, the focus now pivots to Wednesday's Federal Open Market Committee (FOMC) gathering, as investors seek hints in the forward guidance to attain a distinct perspective on the officials' position.

Considering this, the US bond yields, considered the opportunity cost of holding Silver, are edging lower. The 10-year bond yield trades at 4.18%, down by 0.62 % losses on the day. The 2-year yield stands at 4.95% with 0.81 % losses, and the 5-year yield is at 4.33% with 0.62 % losses.

XAG/USD Levels to watch

The technical analysis of the daily chart suggests a neutral to bearish stance for XAG/USD as the bears work on staging a recovery and exerting their influence. Having turned flat in negative territory, the Relative Strength Index (RSI) suggests a potential market equilibrium with balanced selling and buying pressure. At the same time, the Moving Average Convergence (MACD) shows flat red bars. In addition, the pair is below the 20,100 and 200-day Simple Moving Averages (SMAs), highlighting the continued dominance of bears on the broader scale, requiring the buyers to take action.

Support levels: $22.15, $22.00, $21.80.

Resistance levels: $23.30 (200-day SMA), $23.50, $24.00.

XAG/USD Daily chart

XAG/USD

Overview
Today last price	22.6
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	22.6

Trends
Daily SMA20	23.93
Daily SMA50	23.64
Daily SMA100	24.05
Daily SMA200	23.26

Levels
Previous Daily High	22.76
Previous Daily Low	22.37
Previous Weekly High	23.68
Previous Weekly Low	22.58
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	22.52
Daily Fibonacci 61.8%	22.61
Daily Pivot Point S1	22.39
Daily Pivot Point S2	22.18
Daily Pivot Point S3	21.99
Daily Pivot Point R1	22.79
Daily Pivot Point R2	22.97
Daily Pivot Point R3	23.18

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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