- Silver Price snaps three-day losing streak by recovering from 1.5-month-old rising support line.
- Convergence of 50-DMA, 38.2% Fibonacci retracement challenges XAG/USD buyers.
- 200-DMA, $23.00 appear tough nuts to crack for Silver bears during further downside.
- Firmer US NFP can trigger XAG/USD retreat but sellers have a bumpy road to travel.
Silver Price (XAG/USD) prints the first daily gains in four as it rebounds from the lowest level in three weeks amid early Friday in Asia. In doing so, the XAG/USD prints mild gains around $23.60 while bouncing off an upward-sloping support line from June 23.
Adding credence to the corrective bounce could be the US Dollar’s consolidation ahead of the US employment report for June.
Also read: Forex Today: A cautions tone ahead of NFP
However, a convergence of the 50-DMA and 38.2% Fibonacci retracement of the metal’s March-May upside, near $23.75, appears the key upside hurdle to watch during the further recovery of the Silver Price.
Even if the precious metal manages to cross the $23.75 hurdle, the late July swing low of around $24.05 and June’s peak of near $24.55 can act as additional upside filters before giving control to the XAG/USD buyers.
Following that, July’s high of around $25.30 will be the last defense of the Silver sellers before challenging the yearly peak of near $26.15 marked in May.
On the flip side, a daily closing beneath the stated immediate support line, close to $23.45 at the latest, won’t provide open invitations to the Silver bears as the 200-DMA can prod a further downside near $23.15.
In a case where the XAG/USD remains bearish past $23.15, an ascending trend line from March and a 50% Fibonacci retracement together highlight the $23.00 round figure as the key support to watch for bears.
Silver Price: Daily chart
Trend: Pullback expected
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 trades deep in red below 1.0300 after strong US jobs report
EUR/USD stays under bearish pressure and trades below 1.0300 in the American session on Friday. The US Dollar benefits from the upbeat jobs report, which showed an increase of 256,000 in Nonfarm Payrolls, and forces the pair to stay on the back foot heading into the weekend.
GBP/USD drops toward 1.2200 on broad USD demand
GBP/USD extends its weekly slide and trades at its weakest level since November 2023 below 1.2250. The data from the US showed that Nonfarm Payrolls rose by 256,000 in December, fuelling a US Dollar rally and weighing on the pair.
Gold ignores upbeat US data, approaches $2,700
Following a drop toward $2,660 with the immediate reaction to strong US employment data for December, Gold regained its traction and climbed towards $2,700. The risk-averse market atmosphere seems to be supporting XAU/USD despite renewed USD strength.
Sui bulls eyes for a new all-time high of $6.35
Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising.
Think ahead: Mixed inflation data
Core CPI data from the US next week could ease concerns about prolonged elevated inflation while in Central and Eastern Europe, inflation readings look set to remain high.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.