Silver Price Analysis: XAG/USD clings to gains near mid-$22.00s, not out of the woods yet

Silver attracts some buying on Tuesday and holds above the 38.2% Fibo. level support.
The setup favours bearish traders and supports prospects for an eventual breakdown.
A sustained strength beyond the 50-day SMA is needed to negate the bearish outlook.

Haresh Menghani FXStreet

Silver regains some positive traction on Tuesday and sticks to its modest intraday gains, just below mid-$22.00s through the early European session. The white metal, however, lacks bullish conviction and remains well within the striking distance of a nearly two-month low touched on Monday.

Looking at the broader picture, the XAG/USD last week confirmed a bearish breakdown through the lower end of a multi-week-old trading range support near the $23.00-$22.90 area. Moreover, bearish technical indicators on the daily chart support prospects for an extension of the recent sharp pullback from the highest level since April 2022 touched last Thursday.

The XAG/USD, however, manages to hold above the $22.15 support zone, or the 23.6% Fibonacci retracement level of the recent rally from October 2022, which should act as a pivotal point. Some follow-through selling below the $22.00 mark will reaffirm the negative bias and drag the white metal to the next relevant support near the 100-day SMA, around the $21.60-$21.55 zone.

On the flip side, any meaningful recovery is likely to confront a hurdle near the aforementioned support breakpoint, around the $23.00-$22.90 region. This is closely followed by the 50-day SMA, currently around the $23.30-$23.35 region. A sustained strength beyond will negate the near-term bearish outlook for the XAG/USD and prompt some short-covering rally.

The momentum might then allow bulls to reclaim the $24.00 round figure. The XAG/USD could eventually climb back to the $24.55-$24.60 heavy supply zone en route to the $25.00 psychological mark for the first time since April 2022 and the next relevant hurdle near the $25.35 region.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	22.43
Today Daily Change	0.17
Today Daily Change %	0.76
Today daily open	22.26

Trends
Daily SMA20	23.62
Daily SMA50	23.45
Daily SMA100	21.72
Daily SMA200	21.01

Levels
Previous Daily High	22.62
Previous Daily Low	22.15
Previous Weekly High	24.64
Previous Weekly Low	22.29
Previous Monthly High	24.55
Previous Monthly Low	22.76
Daily Fibonacci 38.2%	22.33
Daily Fibonacci 61.8%	22.44
Daily Pivot Point S1	22.06
Daily Pivot Point S2	21.87
Daily Pivot Point S3	21.59
Daily Pivot Point R1	22.53
Daily Pivot Point R2	22.81
Daily Pivot Point R3	23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.