Silver Price Analysis: XAG/USD bears approach $22.50 support ahead of US NFP
- Silver Price remains on the back foot within a fortnight-old bullish channel.
- Downbeat oscillators suggest rejection of bullish chart pattern but XAG/USD sellers need validation from $22.00.
- Convergence of 200-SMA, two-month-old descending resistance line and stated channel’s top line prods Silver bulls.
- Mixed clues for US employment data highlight US NFP release and its market implications.
Silver Price (XAG/USD) remains pressured around $22.70 amid early Friday in Asia, after falling the most in two weeks, as well as snapping a four-day uptrend, the previous day.
Also read: US June Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises
In doing so, the XAG/USD seesaws within a fortnight-old bullish channel, approaching the bottom line of the bullish chart formation of late.
Given the bearish MACD signals and the downbeat RSI (14), not oversold, the Silver price is likely to reject the bullish channel by breaking the $22.50 support. However, the previous monthly low of around $22.20 precedes the $22.00 round figure to challenge the XAG/USD bears afterward.
It’s worth noting that the recent positioning for the US employment data for June will allow the XAG/USD traders to lick their wounds.
The same highlights the 100-SMA hurdle of $23.05 as immediate resistance to watch for the Silver buyers.
However, a convergence of the 200-SMA, downward-sloping resistance line from early March and the aforementioned rising channel’s top line, close to $23.30-35 at the latest, appears a tough nut to crack for the Silver buyers to crack for taking control.
Overall, Silver Price is likely to decline further but the south run appears long and bumpy.
Silver Price: 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.
