Silver Price Analysis: XAG/USD consolidates around $21.70s after testing $22.00
- Silver price remains steady at around $21.70s despite losing 0.39% on Tuesday.
- The confluence of the 200/100/50-day EMAs would be solid resistance to break.
- XAG/USD Price Analysis: In the short term, neutral biased.
XAG/USD stays firm after rallying more than 6% on Monday on investors’ flight to safety following the collapse of the Silicon Valley Bank and Signature Bank. Nevertheless, worries about a potential spread had waned. At the time of writing, the XAG/USD exchanges hands at $21.68 a troy ounce.
XAG/USD Price action
Silver prices retreated from weekly highs reached during the day at $21.96 due to several technical reasons. The 200, 50 and 100-day Exponential Moving Averages (EMAs) confluence around the $21.79-86 area capped the white metal climb. Therefore, the XAG/USD closed Tuesday’s session at around $21.68, below the 200-day EMA. That said, the XAG/USD is neutral to upward bias, though a daily close above the 200-day EMA must shift the bias neutral upwards.
On the upside, the XAG/USD first resistance would be the 200-day EMA at $21.79. Once cleared, the next supply zone would be the 50/100-day EMAs intersection, at $21.84-86, followed by the $22.00 figure.
On the flip side, the XAG/USD first support would be the 20-day EMA at $21.26. A breach of the latter will expose the March 10 daily high turned support at $20.78, followed by the March 13 low at $20.50
XAG/USD Daily chart
XAG/USD Technical levels
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
