- Silver attracted some buying near 200-hour SMA and edged higher on Friday.
- The near-term technical setup remains tilted firmly in favour of bearish traders.
- A sustained move beyond the overnight highs is needed to negate the bearish bias.
Silver stalled the previous day's retracement slide from two-week tops and attracted some dip-buying on the last trading day of the week. The commodity held on to its modest gains through the first half of the European session and was last seen hovering near the $26.10-15 region.
From a technical perspective, the XAG/USD, for now, seems to have formed a strong base near 200-hour SMA, which should now act as a key pivotal point for short-term traders. Given that the overnight positive move struggle to find acceptance above the $26.30 supply zone, the bias still seems tilted in favour of bearish traders.
That said, the XAG/USD has been showing resilience below the $25.70 confluence support, comprising of the very important 200-day SMA and the 61.8% Fibonacci level of the $23.78-$28.75 move up. This makes it prudent to wait for some follow-through selling below the mentioned region before positioning for any further depreciating move.
Meanwhile, technical indicators on the daily chart – though have been recovering from the negative territory – are yet to confirm a bullish bias. This adds credence to the near-term negative bias. Hence, any subsequent positive move back towards the mentioned confluence region might still be seen as a selling opportunity.
However, a convincing breakthrough, leading to a subsequent move beyond the $26.55-60 hurdle, might push the XAG/USD further towards the 38.2% Fibo. level, around the $26.85 region. This is followed by the $27.00 mark, above which the next relevant resistance is pegged near mid-$27.00s, or the 23.6% Fibo. level.
On the flip side, any meaningful pullback below the $26.00-$25.95 region (200-hour SMA) might continue to find decent support near the $25.70 region ahead of weekly swing lows, around mid-$25.00s. Sustained weakness below might turn the XAG/USD vulnerable and pave the way for a fall towards challenging the key $25.00 psychological mark.
Silver daily chart
Technical levels to watch
|Today last price||26.11|
|Today Daily Change||0.08|
|Today Daily Change %||0.31|
|Today daily open||26.03|
|Previous Daily High||26.4|
|Previous Daily Low||25.95|
|Previous Weekly High||26.3|
|Previous Weekly Low||25.55|
|Previous Monthly High||28.56|
|Previous Monthly Low||25.52|
|Daily Fibonacci 38.2%||26.12|
|Daily Fibonacci 61.8%||26.23|
|Daily Pivot Point S1||25.85|
|Daily Pivot Point S2||25.67|
|Daily Pivot Point S3||25.39|
|Daily Pivot Point R1||26.31|
|Daily Pivot Point R2||26.58|
|Daily Pivot Point R3||26.76|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD retreats to 1.0750, looks to post small weekly gains
EUR/USD lost its traction and declined to the 1.0750 area in the American session on Friday. In the absence of high-tier data releases, week-end flows seem to be impacting the pair's action heading into the weekend.
GBP/USD holds above 1.2550 ahead of the weekend
GBP/USD keeps its footing on Friday and trades modestly higher on the day above 1.2550 following Thursday's rally. Ahead of next week's all-important US inflation data and Fed policy announcements, modest US Dollar weakness allows the pair to stay in positive territory.
Gold struggles to find direction, holds steady near $1,960
Gold price struggles to make a decisive move in either direction on Friday in the absence of high-impact data releases. The benchmark 10-year US Treasury bond yield stays relatively calm above 3.7% following Thursday's slide, limiting XAU/USD's action.
Weekly Roundup: Binance US halts fiat services, Coinbase does business as usual, XRP hits key milestone
The US financial regulator, the Securities and Exchange Commission’s (SEC) clampdown on exchange negatively influenced the crypto market and assets throughout the week. The lawsuits against Binance and Coinbase resulted in several challenges for the platforms’ users.
The Week Ahead - FOMC, ECB and Bank of Japan, US CPI, China retail sales and Tesco results
A busy week is ahead, including meetings from the Federal Reserve, the European Central Bank, and the Bank of Japan. Data to be released includes US CPI and China retail sales. Tesco will also release results.