Silver Price Analysis: XAG/USD eases from one-year peak, bullish bias remains intact

Silver pulls back from a fresh one-year high touched earlier this Friday amid overbought RSI.
The technical setup still favours bulls and supports prospects for a further appreciating move.
Any meaningful corrective slide might still be seen as a buying opportunity and remain limited.

Haresh Menghani FXStreet

Silver touches a fresh one-year high on the last day of the week, albeit struggles to capitalize on the move and faces rejection near the $26.00 round-figure mark. The white metal surrenders its modest gains and trades near the lower end of its daily range, around the $25.85-$25.80 region during the early part of the European session.

Against the backdrop of a strong rally witnessed over the past month or so, the slightly overbought Relative Strength Index (RSI) on the daily chart turns out to be a key factor holding back traders from placing fresh bets around the XAG/USD. That said, the recent breakout through the $24.30-$24.40 strong horizontal barrier and a subsequent move beyond the $25.00 psychological mark support prospects for additional gains.

Hence, any subsequent pullback is more likely to attract fresh buyers near the $25.40-$25.35 area, or the overnight swing low. This should help limit the downside for the XAG/USD near the $25.00 mark. That said, a convincing break below the latter might prompt some technical selling and accelerate the corrective slide towards the $24.30-$24.40 resistance-turned-support. The latter should act as a strong near-term base for the metal.

On the flip side, bulls might now wait for some follow-through buying beyond the daily swing high, around the $26.00 mark, before placing fresh bets and positioning for a further appreciating move. The XAG/USD might then climb further towards the next relevant hurdle near the $26.40-$26.50 zone before eventually aiming to test the 2022 peak, just ahead of the $27.00 mark.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	25.8
Today Daily Change	-0.02
Today Daily Change %	-0.08
Today daily open	25.82

Trends
Daily SMA20	23.82
Daily SMA50	22.41
Daily SMA100	22.89
Daily SMA200	21.23

Levels
Previous Daily High	25.98
Previous Daily Low	25.39
Previous Weekly High	25.14
Previous Weekly Low	23.57
Previous Monthly High	24.16
Previous Monthly Low	19.9
Daily Fibonacci 38.2%	25.75
Daily Fibonacci 61.8%	25.61
Daily Pivot Point S1	25.49
Daily Pivot Point S2	25.15
Daily Pivot Point S3	24.9
Daily Pivot Point R1	26.07
Daily Pivot Point R2	26.31
Daily Pivot Point R3	26.65

Author

Haresh Menghani

FXStreet

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

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.