Silver Price Analysis: Further XAG/USD decline hinges on $23.30 breakdown
- Silver price retreats from two-month high, snaps three-day winning streak.
- Fortnight-old bullish channel restricts immediate downside ahead of the key SMAs.
- Overbought RSI suggests further pullback in XAG/USD price but bears are far from sight.
Silver price (XAG/USD) pares weekly gains at the highest levels in two months, mildly offered near $23.85 heading into Friday’s European session. In doing so, the bright metal prints the first daily loss in four ahead of the key inflation data from Eurozone and the US.
Also read: Gold Price Forecast: Inflation data, $1,973 support to restrain XAU/USD bears – Confluence Detector
The precious metal’s latest weakness could be linked to a pullback from the resistance line of a two-week-old bullish channel. The XAG/USD retreat also justifies the overbought RSI (14).
However, bullish MACD signals and the stated channel formation keep the Silver bears off the table unless the quote breaks the $23.30 mark, comprising the stated channel’s lower line.
Even so, the 100-SMA and 200-SMA can challenge the bullion’s additional downside near $22.30 and $21.70.
Should the Silver price remains bearish past $21.70, the odds of witnessing a slump toward the $20.00 round figure and then to the monthly low of $19.90 can’t be ruled out.
On the flip side, XAG/USD recovery needs to cross the immediate channel’s top line, close to $24.05 at the latest.
However, the yearly high marked in February around $24.65 can challenge the Silver buyers before giving back control to them.
Silver: Four-hour chart
Trend: Limited downside 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.
