Silver Price Analysis: XAG/USD dribbles around 78.6% Fibo as bears eye four-month-old support
- Silver remains pressured despite taking rounds to the key Fibonacci retracement level.
- 12-day-old descending resistance line, bearish MACD directs the metal towards the key trend line support.
- Any recovery remains elusive until the quote rises past 200-DMA.
Silver (XAG/USD) prices stay sidelined at around $22.60, retreating of late, during Wednesday’s Asian session. In doing so, the bright metal clings to 78.6% Fibonacci retracement (Fibo.) of late 2021 to March’s peak, fading the early week’s rebound from a short-term key support line.
An important Fibo. level restricts the quote’s immediate moves around $22.55. However, bearish MACD signals and the failures to cross a downward sloping trend line from April 18 favor sellers to aim for the $22.15 support, comprising an upward sloping support line from early January.
Following that, the yearly bottom surrounding $21.95 and the December 2021 low of $21.42 could lure the XAG/USD sellers.
On the flip side, a clear upside break of the aforementioned resistance line, at $22.75 by the press time, won’t be enough for the buyers’ return as the 61.8% Fibonacci retracement level of $23.55 will challenge the rebound afterward.
Also acting as an upside hurdle is the 200-DMA, close to $23.75 at the latest, a break of which will need validation from March’s low near $24.00 before pleasing the silver buyers.
Silver: Daily chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
