Silver Price Analysis: XAG/USD extends 200-DMA breakdown to refresh three-month low near $22.00

Silver Price drops to the lowest levels in three months during five-day losing streak.
Clear downside break of previous support line from mid-March, 200-DMA favor XAG/USD bears.
Bearish MACD signals also suggest further downside of the Silver Price but RSI (14) hints at a pullback.
Nine-month-old ascending support line appears the key challenge for metal sellers.

Anil Panchal FXStreet

Silver Price (XAG/USD) stands on slippery grounds as it declines for the fifth consecutive day to print the lowest level since March 17 to around $22.15 amid Friday’s Asian session.

In doing so, the bright metal justifies the early-week break of an ascending support line from mid-March, now resistance around $23.20, as well as the previous day’s smashing of the 200-DMA level surrounding $22.50.

Also favoring the Silver sellers are the bearish MACD signals.

However, the oversold RSI (14) line suggests limited downside room for the XAG/USD, which in turn highlights the 50% Fibonacci retracement level of the metal’s upside from September 2022 to May 2023, close to $21.80.

Following that, an upward-sloping support line from early September and the 61.8% Fibonacci retracement level, respectively around $21.30 and $20.80, will act as the last defense of the Silver buyers.

Meanwhile, the XAG/USD run-up beyond the 200-DMA level of $22.50 and the support-turned-resistance line of around $23.20 could convince the buyers to challenge the monthly high surrounding $24.55, a break of which will push the Silver bears off the table.

Silver Price: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	22.15
Today Daily Change	-0.10
Today Daily Change %	-0.45%
Today daily open	22.25

Trends
Daily SMA20	23.58
Daily SMA50	24.25
Daily SMA100	23.33
Daily SMA200	22.47

Levels
Previous Daily High	22.74
Previous Daily Low	22.18
Previous Weekly High	24.4
Previous Weekly Low	23.22
Previous Monthly High	26.14
Previous Monthly Low	22.68
Daily Fibonacci 38.2%	22.39
Daily Fibonacci 61.8%	22.52
Daily Pivot Point S1	22.04
Daily Pivot Point S2	21.83
Daily Pivot Point S3	21.49
Daily Pivot Point R1	22.6
Daily Pivot Point R2	22.94
Daily Pivot Point R3	23.15

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.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold holds above $4,000/three-month low as Fed hike bets and firm USD cap upside

Gold struggles to capitalize on its modest recovery from levels below the $4,000 psychological mark, or a three-month low set earlier this Friday, and retains a bearish tone through the first half of the European session. Federal Reserve officials recently signaled there is no urgency to raise interest rates. Traders, however, are still pricing in around an 80% chance that the US central bank will raise borrowing costs again at its December policy meeting.

Bitcoin, Ethereum, and Ripple rebound as major support levels cap recent sell-off

Bitcoin, Ethereum and Ripple rebound modestly on Friday after correcting and testing their key support zone the previous day. BTC holds the 50-day EMA, ETH finds support around the 100-day EMA, while XRP holds the horizontal floor near $1.300. The price action of these top three cryptocurrencies suggests a recovery if this critical support zone holds; a decisive close below these levels suggests a deeper correction.

US S&P Global PMI expected to show moderating business activity in October

The United States S&P Global preliminary Purchasing Managers Indices for October will be released on Friday, providing fresh insights into the health of the world's largest economy ahead of next week's Federal Reserve monetary policy meeting. The report includes the Manufacturing PMI, Services PMI and Composite PMI, which measure business activity across the private sector.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.