- Silver once again failed to make it through a stronger resistance near the $26.30 supply zone.
- The set-up favours bearish traders and supports prospects for an eventual break to the downside.
- A sustained move beyond monthly swing highs is needed to negate the near-term negative bias.
Silver continued with its struggle to capitalize on the move beyond the $26.30 strong resistance zone and edged lower on the last trading day of the week. The white metal remained depressed through the early North American session, with bears now awaiting a sustained break below the $26.00 mark.
The mentioned handle is closely followed by the very important 200-day SMA, around the $25.85 region, and the 61.8% Fibonacci level of the $23.78-$28.75 move up, near the $25.70-65 region. Some follow-through selling below monthly swing lows, around mid-$25.00s, will be seen as a fresh trigger for bearish traders and set the stage for additional losses.
Meanwhile, oscillators on the daily chart are holding in the negative territory. This, along with the fact that the XAG/USD has repeated failed to find acceptance above the $50% Fibo., supports prospects for an eventual break to the downside. Hence, a subsequent slide towards the next relevant support, near the key $25.00 psychological mark, looks a distinct possibility.
On the flip side, the $26.30 supply zone might continue to act as an immediate strong resistance ahead of weekly tops, around the $26.45 region. Above the mentioned barriers, the XAG/USD is likely to appreciating further. That said, the momentum is more likely to run out of steam near monthly swing highs, around the $26.75-80 region, which nears the 38.2% Fibo. level.
Only a sustained move beyond will negate near-term negative bias, rather prompt some technical buying. The XAG/USD might then aim to surpass the $27.00 mark and accelerate the positive momentum further towards the 23.6% Fibo. level, around mid-$27.00s.
Silver daily chart
-637620394286880983.png)
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rebounds from multi-week lows, trades above 1.0750
EUR/USD came under heavy bearish pressure and declined to its weakest level in three weeks below 1.0750 on Friday after the stronger-than-expected Nonfarm Payrolls data. Week-end flows, however, helped the pair erase its daily losses.
GBP/USD remains on track to snap three-week winning streak
GBP/USD recovered toward 1.2550 after coming in within a touching distance of 1.2500 in the second half of the day after Nonfarm Payrolls came in at 199,000 for November. Despite the recent rebound, the pair remains on track to snap a three-week winning streak.
Gold retreats below $2,020 as US yields push higher
Gold broke below its daily range and declined toward $2,010 with the immediate reaction to the upbeat US November jobs report. Although XAU/USD managed to recover toward $2,020, rising US Treasury bond yields triggered another leg lower.
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States.
The week ahead – Fed, ECB and Bank of England rate decisions
When the Federal Reserve kept rates unchanged back in November for the second meeting in a row there was still the distinct possibility that the final meeting of 2023 would provide the possibility of one more rate rise to round off the year in line with Fed policymakers dot plot forecasts of 5.6%.