Silver Price Analysis: XAG/USD corrects further from over two-month top, bullish bias remains

Silver edges lower and retreat further from over a two-month peak touched on Friday.
The technical setup supports prospects for the emergence of dip-buying at lower levels.
A sustained move beyond a descending trend line is needed to reaffirm the positive bias.

Haresh Menghani FXStreet

Silver (XAG/USD) extends Friday's retracement slide from the $24.15 region, or its highest level since September 4 and remains under some selling pressure on the first day of a new week. The white metal remains depressed through the early part of the European session and currently trades around the $23.65-$23.60 area, down nearly 0.50% for the day.

From a technical perspective, last week's breakout momentum through the very important 200-day Simple Moving Average (SMA) falters near a resistance marked by a downward sloping trend line extending from the May monthly swing high. The said barrier, currently around the $24.00 round figure, should now act as a key pivotal point for the XAG/USD and help determine the next leg of a directional move.

Oscillators on the daily chart, meanwhile, are holding in the positive territory and are still far from being in the overbought zone. This, in turn, suggests that the path of least resistance for the XAG/USD is to the upside and supports prospects for the emergence of some dip-buying at lower levels. Bulls, however, need to wait for acceptance above the $24.00 mark before placing fresh bets and positioning for further gains.

The XAG/USD might then aim to surpass the $24.20-$24.25 intermediate resistance and make a fresh attempt to conquer the $25.00 psychological mark. Some follow-through buying beyond the $25.15-$25.20 region should set the stage for a more towards reclaiming the $26.00 round figure for the first time since May.

On the flip side, the 200-day SMA, currently pegged near the $23.30 region, now seems to protect the immediate downside. Any further decline could be seen as a buying opportunity and remain limited near the $23.00 mark. That said, a convincing break below the latter might prompt aggressive technical selling and drag the XAG/USD further towards the $22.35-$22.30 zone en route to the $22.00 mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	23.63
Today Daily Change	-0.10
Today Daily Change %	-0.42
Today daily open	23.73

Trends
Daily SMA20	22.96
Daily SMA50	22.69
Daily SMA100	23.22
Daily SMA200	23.28

Levels
Previous Daily High	24.15
Previous Daily Low	23.66
Previous Weekly High	24.15
Previous Weekly Low	21.88
Previous Monthly High	23.7
Previous Monthly Low	20.68
Daily Fibonacci 38.2%	23.85
Daily Fibonacci 61.8%	23.96
Daily Pivot Point S1	23.55
Daily Pivot Point S2	23.37
Daily Pivot Point S3	23.07
Daily Pivot Point R1	24.03
Daily Pivot Point R2	24.33
Daily Pivot Point R3	24.51

Author

Haresh Menghani

FXStreet

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

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.