Silver Price Analysis: XAG/USD drops back below $18.00 with eyes on yearly low
- Silver price fades bounce off two-year low, stays pressured around intraday bottom of late.
- Impending bear cross on MACD joins failure to cross 50-SMA, monthly resistance line to favor sellers.
- Bulls need validation from late-August low, 200-SMA to retake control.
Silver price (XAG/USD) remains on the back foot as bears approach the two-year low marked the last Thursday, depressed around $17.95 during Wednesday’s Asian session.
In doing so, the bright metal takes clues from the looming bear cross of the MACD, as well as the downbeat RSI (14) line.
That said, the commodity’s weakness could be linked to its failure to defend the upside break of the descending trend line from mid-August, as well as the 50-SMA. Also favoring the sellers are the multiple failures to cross the 200-SMA.
Amid these plays, the XAG/USD bears are on their way to the lowest levels since June 2022 surrounding $16.95. However, the latest multi-month low near $17.55 could offer immediate support to watch.
Meanwhile, recovery needs validation from the $18.35-30 resistance confluence including the 50-SMA and the aforementioned resistance line.
Following that, the August 22 swing low and the 200-SMA, respectively near $18.75 and $19.40, could lure the silver buyers.
Silver: Four-hour 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.
