- Silver once again fails ahead of the $26.00 mark and turns lower on Thursday.
- Positive oscillators support prospects for the emergence of some dip-buying.
- A break below the $25.50-40 area is needed to negate the positive outlook.
Silver attracts some sellers following an early uptick to the $26.00 neighbourhood and extends its intraday descent through the early European session on Thursday. The white metal drops to a fresh daily low, around the $25.45 region in the last hour and for now, seems to have snapped a two-day winning streak back closer to over a two-week high touched on Monday.
From a technical perspective, the recent repeated failures near the $26.00 round figure could be seen as the first sign of possible bullish exhaustion. The XAG/USD, however, has been showing resilience near the $25.50-$25.40 strong horizontal resistance breakpoint, now turned support. The said area coincides with the 23.6% Fibonacci retracement level of the March-April rally and should act as a key pivotal point.
Meanwhile, oscillators on the daily chart are holding comfortably in the positive territory. This further makes it prudent to wait for strong follow-through selling below the aforementioned support before confirming that the XAG/USD has formed a near-term top and positioning for any meaningful corrective decline. The white metal might then weaken below the $24.00 mark and test 38.2% Fibo. level, around the $23.70 area.
The downward trajectory could get extended further towards the $23.35-$23.30 confluence, comprising the 50-day and the 100-day Simple Moving Averages (SMAs), en route to the $23.00 mark, or the 50% Fibo. level.
On the flip side, bulls might now wait for a move beyond the $26.00 round figure and a one-year high touched in April before placing fresh bets. The subsequent move up has the potential to lift the XAG/USD towards the $26.25-$26.30 region en route to the March 2022 swing high, just ahead of the $27.00 round-figure mark.
Silver daily chart
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
GBP/USD posts modest gains above 1.2500, UK GDP data eyed
GBP/USD posts modest gains near 1.2525 on Friday. The major pair bounces off the lows of 1.2445 after the Bank of England’s dovish hold. The attention on Friday will shift to the first reading of the UK Gross Domestic Product for Q1 and the US Michigan Consumer Sentiment report.
EUR/USD: The crucial resistance level will emerge at the 1.0790–1.0800 region
The EUR/USD pair trades on a softer note near 1.0775 during the early European hours on Friday. The downtick of the major pair is supported by the renewed US Dollar demand amid hawkish comments from Federal Reserve officials.
Gold price extends the rally despite hawkish Fedspeak
Gold price gains momentum on Friday despite the modest rebound in US Dollar. The yellow metal edges higher as many economists expect a weakening labor market could prompt the Federal Reserve to cut interest rates sooner than currently expected to stimulate economic growth.
Ethereum waiting on a bullish trigger, Consensys CEO takes a jab at the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Rate cut optimism fuelled by higher US jobless claims
With Federal Reserve policy acting as the primary driver of investor sentiment in 2024, renewed optimism surrounding the possibility of rate cuts has propelled the Dow to its most significant rally since December.