• Silver edges higher on Tuesday and recovers a part of the previous day’s decline.
  • The set-up still favours bearish traders and supports prospects for further losses.
  • Sustained strength beyond the $19.50 is needed to negate the bearish outlook.

Silver gains some positive traction on Tuesday and for now, seems to have snapped a two-day losing streak. The white metal held on to the modest intraday gains through the early European session and was last seen hovering near the daily high, around mid-$18.00s.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar range over the past one-and-a-half week or so. Given the recent fall from mid-$22.00s or the June monthly high, the rangebound price moves could be categorized as a bearish consolidation phase.

Adding to this, repeated failures near the $19.00 round figure suggest that the near-term selling bias might still be far from being over. Furthermore, oscillators on the daily chart are holding deep in the bearish territory and add credence to the negative outlook.

Hence, any subsequent move up might still be seen as a selling opportunity near the $19.00 mark. Some follow-through buying has the potential to lift the XAG/USD further, though the momentum is likely to remain capped near the $19.40-$19.50 heavy supply zone.

On the flip side, the YTD low, around the $18.20-$18.15 region, is likely to protect the immediate downside ahead of the $18.00 mark. A convincing break below would be seen as a fresh trigger for bearish traders and set the stage for a further depreciating move.

The XAG/USD could then accelerate the downfall towards the $17.45-$17.40 intermediate support en-route to the $17.00 mark. The bearish trend could get extended and spot prices could eventually drop to test the next relevant support near the $16.70-$16.60 region.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 18.56
Today Daily Change 0.12
Today Daily Change % 0.65
Today daily open 18.44
 
Trends
Daily SMA20 19.25
Daily SMA50 20.74
Daily SMA100 22.49
Daily SMA200 22.99
 
Levels
Previous Daily High 18.79
Previous Daily Low 18.32
Previous Weekly High 19.1
Previous Weekly Low 18.25
Previous Monthly High 22.52
Previous Monthly Low 20.22
Daily Fibonacci 38.2% 18.5
Daily Fibonacci 61.8% 18.61
Daily Pivot Point S1 18.24
Daily Pivot Point S2 18.04
Daily Pivot Point S3 17.77
Daily Pivot Point R1 18.71
Daily Pivot Point R2 18.99
Daily Pivot Point R3 19.18

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops toward 1.0300, eyes on Powell

EUR/USD drops toward 1.0300, eyes on Powell

EUR/USD came under renewed bearish pressure and dropped toward 1.0300 amid month-end flows. The US Dollar Index gathers strength following the mixed macroeconomic data releases while investors await FOMC Chairman Jerome Powell's speech.

EUR/USD News

GBP/USD retreats to 1.1900 as US Dollar recovers

GBP/USD retreats to 1.1900 as US Dollar recovers

GBP/USD has reversed its direction and declined toward 1.1900 after having climbed above 1.2000 earlier in the day. Wall Street's main indexes are trading mixed after the opening bell and the US Dollar benefits from the cautious mood ahead of Powell's speech.

GBPUSD News

Gold holding ground around $1,750 as Powell looms

Gold holding ground around $1,750 as Powell looms

XAU/USD holds on to modest intraday gains after hitting a fresh weekly high. Investors await US Federal Reserve Chair Jerome Powell's words to move more aggressively. Mixed US data showed better-than-anticipated growth but tepid employment performance.

Gold News

ECB director calls for Bitcoin ban, says BTC is not suitable for payments or investments

ECB director calls for Bitcoin ban, says BTC is not suitable for payments or investments

European Central Bank's head stated Bitcoin should not be legalized. The bank’s director general Ulrich Bindseil states that regulation of cryptocurrencies is not equivalent to legalization.

Read more

S&P 500 (SPX) waits for Powell as ADP helps doves and GDP helps hawks

S&P 500 (SPX) waits for Powell as ADP helps doves and GDP helps hawks

Equities snoozed across the finish line on Tuesday with little catalyst. The Dow closed completely flat almost to the tick. The NASDAQ was lower by 0.7%, and the S&P 500 was also barely changed. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures