Silver Price Analysis: XAG/USD climbs to multi-week highs, closes in on $15/oz
- XAG/USD bounced from 20-day SMA near 14.25 on Monday.
- Initial hurdle for the pair aligns at 15 ahead of 15.30.
After falling to 14.25 earlier in the day, the XAG/USD pair gained traction supported by the 20-day SMA. The upbeat market mood on slight improvements seen in coronavirus infection and fatality figures on Monday seems to be providing a boost to the pair. As of writing, the pair was trading at its highest level in three weeks at 14.82, adding nearly 3% on a daily basis.
Technical outlook
With Monday's rally, the pair broke above the Fibonacci 50% retracement of the sharp drop witnessed during the first half of March at 14.60, which acted as strong resistance in the last week of the month. With a daily close above that level, the pair could target 15 (psychological level) and 15.30 (Fibonacci 61.8% retracement).
On the downside, 14.60 is now the initial support ahead of 14.25 (20-day SMA/daily low) and 13.90 (Fibonacci 38.2% retracement). Meanwhile, the RSI indicator on the daily chart is edging higher above the 50 mark to suggest that the bullish momentum is building up.
Silver daily chart
Additional technical levels
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
