Silver Price Analysis: XAG/USD climbs, targeting 200-DMA as Powell’s comments lift precious metals
- Daily chart shows Silver as bearish-biased, remaining below the 200-DMA at $23.31.
- A breach of the 200-DMA at $23.31 could open the door for further upside, with potential targets at $23.72 and $24.00.
- If XAG/USD slides below $23.00, it could drop toward the 50-DMA at $22.90, followed by $22.37 and the 20-day EMA at $22.20.
Silver price (XAG/USD) climbed from around two-day lows of $ 22.60 and targeted the 200-day moving average (DMA) on Thursday after comments from the US Federal Reserve (Fed) Chair Jerome Powell impacted the odds for another rate hike in the futures market. Hence, XAG/USD advanced, and trades at around $22.95, gaining 0.50%.
The XAG/USD daily chart portrays the grey metal as bearish-biased, as it remains below the 200-DMA at $23.31, which capped the October 18 rally towards the $24.00 figure. In doing that, Silver registered a daily close below the 50-DMA at $22.90, keeping sellers in charge.
However, dovish remarks from Powell lifted XAG/USD above the $23.00 figure, opening the door for further upside, with the 200-DMA at sight at $23.31. A breach of the latter would open the door to challenge the top of the Bollinger Band at $23.72 before testing $24.00.
Conversely, if Silver Spot slides below $23.00, that would pave the way to test the 50-DMA at $22.90, followed by intermediate support at $22.37. Once cleared, the next stop would be the 20-day EMA at $22.20.
XAG/USD Price Action – Daily chart
XAG/USD Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
