- 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
-637944161213895389.png)
Key levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD languishes near its lowest level since March, trades just above mid-1.0500s
The EUR/USD pair enters a bearish consolidation phase and oscillates in a narrow range near its lowest level since March 16, around the 1.0555 area touched during the Asian session on Wednesday.
GBP/USD extends losses below 1.2150 on hot US data, focus shifts to Core PCE, UK GDP
GBP/USD continues the losing streak that began on September 20, trading below 1.2150 during the Asian session on Wednesday. Upbeat economic data from the United States (US) reinforces the prevailing pressure on the pair.
Gold price remains vulnerable near one-month low on bullish USD, Fed rate hike bets
Gold price shows some resilience below the $1,900 mark during the Asian session on Wednesday, albeit struggles to register any meaningful recovery from over a one-month low touched the previous day.
This short-term Bitcoin holder indicator forecasts another rally for BTC
Bitcoin price has been malleable to the short-term holder movements. A large spike in profits for short-term holders is almost always met by a correction in BTC. Likewise, a surge in short-term holders purchasing BTC could trigger an uptrend in the pioneer crypto.
US government shutdowns and US Dollar implications
A potential US government shutdown that could start October 1st looms, the chances of which are more or less seen as a coin flip at this point. Should a shutdown transpire, there could be a negative impact of the US dollar, albeit one that is likely to be modest and short-lived.