Silver Price Analysis: XAG/USD defends ascending trend-line/100-period SMA confluence support

Silver once again managed to find decent support near the $27.45 confluence support.
Mixed oscillators on hourly/daily charts warrant caution before placing directional bets.

Haresh Menghani FXStreet

Silver attracted some dip-buying near the lower end of its weekly trading range, around the $27.45 region and refreshed daily tops during the early part of the European session.

The mentioned area marks an important confluence support comprising an ascending trend-line extending from YTD lows and 100-period SMA on the 4-hour chart. This should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the XAG/USD.

The commodity, for now, seems to have stalled its retracement slide from one-week tops, around the $28.20-25 region touched in the previous session. That said, the lack of any follow-through buying warrants some caution before traders start positioning for any further appreciating move.

Meanwhile, technical indicators on hourly charts have started drifting into the negative territory, albeit maintained their bullish bias on the daily chart. This makes it prudent to wait for sustained weakness below the said confluence support in order to confirm a near-term bearish bias.

Some follow-through selling below the last week's swing low, near the $27.20 area will reaffirm a breakdown and prompt aggressive technical selling. The XAG/USD might then turn vulnerable to break below the $27.00 mark and accelerate the slide to 200-period SMA, around the $26.75 region.

The downward trajectory could further get extended and drag the metal to the $26.25 region, en-route the $26.00 mark and the next major support near the $25.75-70 zone.

On the flip side, the $28.00 mark now seems to act as an immediate resistance ahead of the $28.20-25 supply zone. A convincing break through the mentioned hurdle should pave the way for a move beyond the $28.75 intermediate hurdle and allow bulls to aim back to reclaim the $29.00 round figure.

XAG/USD 4-hour chart

Technical levels to watch

XAG/USD

Overview
Today last price	27.72
Today Daily Change	0.03
Today Daily Change %	0.11
Today daily open	27.69

Trends
Daily SMA20	27.3
Daily SMA50	26.22
Daily SMA100	26.3
Daily SMA200	25.69

Levels
Previous Daily High	28.23
Previous Daily Low	27.6
Previous Weekly High	28.75
Previous Weekly Low	27.2
Previous Monthly High	26.64
Previous Monthly Low	24.25
Daily Fibonacci 38.2%	27.85
Daily Fibonacci 61.8%	27.99
Daily Pivot Point S1	27.45
Daily Pivot Point S2	27.21
Daily Pivot Point S3	26.82
Daily Pivot Point R1	28.08
Daily Pivot Point R2	28.47
Daily Pivot Point R3	28.71

Author

Haresh Menghani

FXStreet

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

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.