• Silver price rebounds as DXY eases but not out of the woods yet.
  • XAG/USD faces stiff resistance at the bearish 50-DMA barrier.
  • Bears eye a firm break below rising trendline support at $22.43.

Silver price (XAG/USD) is catching a breather above $22.50 after a five-day non-stop downward spiral.

A minor pullback in the US dollar across the board, as the Asian stocks and US equity futures regain footing ahead of PCE inflation data this Friday. The US dollar index eases from 18-month highs of 97.29 to now trade at 97.19, down 0.07% on the day.

The greenback garnered strength this week, mainly in response to the hawkish Fed outlook, stronger US Q4 advance GDP and the Russia-Ukraine geopolitical risks.

Markets are taking profits off the table on their dollar longs ahead of the critical US PCE inflation release, helping silver price find a floor.

However, a bottom in silver price appears distant, as bears are likely to remain in the game amid a bearish technical setup on the daily chart.

After the downside break from three-week-old ascending trendline support at $23.66 on Wednesday, selling pressure intensified and knocked down silver price sharply through all the major Daily Moving Averages (DMA).

XAG bulls, however, managed to find support just ahead of the six-week-long rising trendline support, now aligned at $22.43.

Silver Price Chart: Daily chart

If buyers fail to find a strong foothold above the bearish 50-DMA at $22.91, then sellers are likely to return, putting the daily trendline support at risk once again.

Daily closing below the latter will trigger a sharp sell-off towards the January 7 lows of $21.95, below which the $21.50 psychological level will be on the sellers’ radars.

The 14-day Relative Strength Index (RSI) is attempting a bounce but remains well below the midline, suggesting that the downside risks remain intact.

Silver Additional levels

XAG/USD

Overview
Today last price 22.74
Today Daily Change 0.03
Today Daily Change % 0.13
Today daily open 22.73
 
Trends
Daily SMA20 23.21
Daily SMA50 22.95
Daily SMA100 23.23
Daily SMA200 24.56
 
Levels
Previous Daily High 23.6
Previous Daily Low 22.58
Previous Weekly High 24.7
Previous Weekly Low 22.81
Previous Monthly High 23.44
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.97
Daily Fibonacci 61.8% 23.21
Daily Pivot Point S1 22.34
Daily Pivot Point S2 21.95
Daily Pivot Point S3 21.32
Daily Pivot Point R1 23.36
Daily Pivot Point R2 23.99
Daily Pivot Point R3 24.38

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD bulls flirt with 0.7100 with eyes on Aussie Retail Sales, US PCE Inflation

AUD/USD holds onto the recently sidelined moves around 0.7100 as bulls and bears jostle over mixed clues heading into the key data on Friday. Also restricting the Aussie prices are downbeat statistics at home and looming economic fears over the largest customer China.

AUD/USD News

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD: Bulls are taking control and eye the 1.08 area

EUR/USD's market structure is now bullishon the daily chart. Euro's support near 1.0705 could offer a base from which bulls can engage in order to target the 1.08 areas. For the FOMC minutes, the pair was based at the targetted support area and there were prospects of a higher correction from support.

EUR/USD News

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold bounces from $1,850, DXY remains soft on soaring market mood

Gold price (XAU/USD) witnessed a minor pullback towards $1,850.00 in its initial trading hours but has bounced back sharply. The precious metal is displaying a balance auction in a range of $1,840.76-1,856.35 from Wednesday.

Gold News

Will Cardano price finally show its cards?

Will Cardano price finally show its cards?

Cardano price is preparing for a retest of $0.80. Still, jumping in early might be too risky. Traders should wait for confirmation signals.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures