Silver Price Analysis: XAG/USD bulls look to seize control, move beyond 200-hour SMA awaited

Silver attracts some dip-buying on Wednesday and spikes to a multi-day high.
The move confirms a breakout through a one-week-old descending trend line.
A sustained break below the $21.00 mark is needed to negate the positive bias.

Haresh Menghani FXStreet

Silver reverses an intraday dip to sub-$21.00 levels and surges to a four-day high during the early European session on Wednesday. The white metal is currently trading around the $21.25-$21.30 region, up over 0.80% for the day, with bulls now awaiting a sustained move beyond the 200-hour SMA before placing fresh bets.

From a technical perspective, the momentum confirms a breakout through a one-week-old descending trend-line resistance. Meanwhile, oscillators on the daily chart are holding in the bullish territory and have just started gaining positive traction on hourly charts. This, in turn, supports prospects for an extension of the recovery from a nearly two-week low, around the $20.60-$20.55 area touched on Monday.

Some follow-through buying beyond the $21.35 region (200-hour SMA) will reaffirm the constructive outlook and lift the XAG/USD towards the $21.75-$21.80 resistance zone. This is followed by the $22.00 mark and over a five-month high, around the $22.25 area, which if cleared will set the stage for a move towards the $22.50-$22.60 supply zone. Spot prices could eventually reclaim the $23.00 round figure.

On the flip side, the $21.00-$20.90 area might continue to protect the immediate downside. The said support represents an ascending trend-line extending from the weekly low touched on Monday. A convincing break below will negate the positive set-up and shift the near-term bias in favour of bearish traders. The XAG/USD might then slide to the $20.60-$20.55 area (weekly low) and the $20.00 psychological mark.

Silver 1-hour chart

Key levels to watch

XAG/USD

Overview
Today last price	21.25
Today Daily Change	0.16
Today Daily Change %	0.76
Today daily open	21.09

Trends
Daily SMA20	20.61
Daily SMA50	19.83
Daily SMA100	19.54
Daily SMA200	21.4

Levels
Previous Daily High	21.34
Previous Daily Low	20.83
Previous Weekly High	22.25
Previous Weekly Low	20.75
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	21.14
Daily Fibonacci 61.8%	21.02
Daily Pivot Point S1	20.83
Daily Pivot Point S2	20.58
Daily Pivot Point S3	20.32
Daily Pivot Point R1	21.34
Daily Pivot Point R2	21.6
Daily Pivot Point R3	21.85

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

Fed Minutes expected to shed light on the depth of FOMC hawkish split

The United States (US) Federal Reserve (Fed) will release the Minutes of the July Federal Open Market Committee (FOMC) meeting on Wednesday. The document should allow investors to assess the extent of the hawkish bias within the central bank after a meeting marked by three dissenting votes in favor of a rate hike.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.