Silver Price Analysis: XAG/USD bears need validation from $22.10 and FOMC Minutes


  • Silver Price retreats towards seven-week-old horizontal support amid cautious mood.
  • Economic fears emanating from China, firmer US Dollar weigh on XAG/USD price.
  • RSI conditions, multi-day-long horizontal region prod Silver sellers.
  • Bear cross, sustained trading below the key resistance line and SMAs challenge XAG/USD recovery hope.

Silver Price (XAG/USD) remains pressured at the lowest level in seven weeks despite making rounds to $22.50 during the early Asian session on Wednesday. In doing so, the bright metal fades the previous day’s corrective bounce off the key support zone amid the market’s broad risk-off mood and the firmer US Dollar and the Federal Reserve (Fed) monetary policy meeting minutes.

It’s worth noting that China-inflicted market pessimism joins the firmer US data to underpin the US Dollar’s run-up and weigh on the XAG/USD ahead of this week’s top-tier catalyst.

Technically, the 100-SMA stays beneath the 200-SMA and portrays the “Bear Cross”, which in turn suggests further downside of the Silver Price. Also keeping the XAG/USD sellers hopeful is the commodity’s sustained trading below a three-week-long descending resistance line.

However, a horizontal area comprising multiple levels marked since June 23, close to $22.10–30, puts a floor under the XAG/USD price amid a nearly oversold RSI (14) line.

In a case where the Silver Price breaks the $22.10 support, it becomes vulnerable to testing the early March swing high of around $21.30 with the $22.00 threshold likely acting as an intermediate halt.

On the flip side, a clear break of the immediate resistance line, close to $22.85 at the latest, will direct the XAG/USD toward the 100-SMA hurdle of around $23.65. Though, the 200-SMA level of near $23.80 acts as the final defense of the Silver sellers.

Silver Price: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price 22.54
Today Daily Change -0.06
Today Daily Change % -0.27%
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

 

 

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