Silver Price Analysis: XAG/USD bounces off five-month-old support towards $23.30 resistance

Silver Price picks up bids to defend Thursday’s recovery from the key support line.
Convergence of 200-DMA, resistance-turned-support from early March join bearish MACD signal to prod XAG/USD bulls.
Silver bears need validation from $22.00 to tighten the grip.

Anil Panchal FXStreet

Silver Price (XAG/USD) refreshes intraday high near $22.75 during early Friday as it stretches the previous day’s corrective bounce off an ascending support line from March 14.

It’s worth noting, however, that the bearish MACD signals join a convergence of the 200-DMA and a five-month-old previous support line to challenge the Silver buyers near $23.25-30.

Following that, the late July swing low of around $24.00 and June’s peak of around $24.55 will lure the Silver buyers.

Though, the previous monthly top of around $25.30 and a four-month-long horizontal resistance area near $26.10-15 appear major challenges for the XAG/USD bulls afterward.

Meanwhile, a daily closing below the previously mentioned rising support line, close to $22.60 by the press time, could quickly fetch the Silver Price towards a region comprising multiple levels marked since mid-March, close to $22.10. Also acting as a downside filter is the $22.00 round figure.

In a case where the XAG/USD remains bearish below $22.00, the odds of witnessing the commodity’s slump toward early March’s swing high of near $21.30 can’t be ruled out.

Overall, the Silver Price slips off the bear’s radar but remains less lucrative for buyers below $23.30.

Silver Price: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	22.76
Today Daily Change	0.05
Today Daily Change %	0.22%
Today daily open	22.71

Trends
Daily SMA20	24.15
Daily SMA50	23.68
Daily SMA100	24.06
Daily SMA200	23.24

Levels
Previous Daily High	23
Previous Daily Low	22.63
Previous Weekly High	24.84
Previous Weekly Low	23.23
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	22.86
Daily Fibonacci 61.8%	22.77
Daily Pivot Point S1	22.56
Daily Pivot Point S2	22.4
Daily Pivot Point S3	22.18
Daily Pivot Point R1	22.93
Daily Pivot Point R2	23.15
Daily Pivot Point R3	23.3

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold retakes $4,100 as weak US bond yields and USD support ahead of US NFP

Gold attracts dip-buyers during the Asian session on Friday, stalling the previous day’s pullback from a two-week high. The recent fall in US bond yields undermines the US Dollar amid hopes for Iran diplomacy, supporting the bullion. However, a higher-rate environment warrants caution for XAU/USD bulls as focus remains on the crucial US NFP report.

Ethereum falls 7% as AI sell-off hits crypto

Ethereum falls 7% to $2,230 on Thursday as AI stock sell-offs spilled into the crypto market. The top altcoin's decline wiped out all of Wednesday's post-US midterm gains, triggering $181.8 million in ETH liquidations over the past 24 hours. Long liquidations dominated, totaling $149.7 million, according to Coinglass data.

Neither the election nor the US Dollar: Why Friday's payrolls hold the key to Gold's next move

Gold has climbed back above $4,000 as the US Dollar weakened following a Democratic sweep in the US midterm elections. However, with every Gold rally facing heavy selling throughout the year, investors are looking to Friday's Nonfarm Payrolls report to determine whether this move marks a sustainable breakout or just another temporary rebound.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.