Silver Price Analysis: XAG/USD bears need validation from $20.60
- Silver remains pressured around weekly low, holds onto downside break of two-week-old support.
- Six-week-long horizontal support, nearly oversold RSI can challenge further downside.
- 200-SMA holds the key for bull’s entry, multiple supports to test bears on the way to 61.8% FE.
Silver Price (XAG/USD) remains on the back foot, justifying the previous day’s technical break, heading into Wednesday’s European session. That said, the bright metal seesaws around $20.80 by the press time.
The XAG/USD bears cheered the downside break of fortnight-old support, now resistance near $20.90, on Tuesday to refresh the weekly low. However, early May’s low surrounding $20.60 challenged the quote’s further downside.
The corrective pullback, however, remains below the previous support line near $20.90 to keep sellers hopeful of witnessing the aforementioned horizontal support near $20.60.
Though, nearly oversold RSI conditions seem to challenge the metal prices at the weekly low, a break of which could direct the sellers towards the yearly bottom of $20.45 marked in May.
In a case where XAG/USD remains bearish past $20.45, the 61.8% Fibonacci Expansion (FE) of April 20 to June 06 moves, near $19.45, will be in focus.
Alternatively, recovery remains elusive below the support-turned-resistance level of $20.90.
Following that, downward sloping trend lines from June 21 and June 06, respectively near $21.25 and $21.40, could challenge the silver buyers.
It’s worth noting, however, that the 200-SMA level of $21.68 holds the key to XAG/USD bull’s entry.
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.
