Silver Price Analysis: XAG/USD grinds within key Fibonacci retracement envelope
- Silver price seesaws between 50% and 61.8% Fibonacci retracement levels so far in the week.
- 21-EMA adds to the upside filters while downbeat RSI teases XAG/USD sellers.
- The $21.70, $20.90 can probe bears below the “Golden ratio”.
Silver price (XAG/USD) fades the previous day’s recovery moves as it retreats to $22.30 during early Thursday in Asia. Even so, the bright metal defends the weekly trading range inside crucial Fibonacci retracement levels of the quote’s upside from late November 2022 to early February 2023.
Even if the $0.50 range restricts Silver price moves of late, RSI conditions and the 21-bar Exponential Moving Average (EMA), around $22.50 by the press time, make it hard for the buyers to take control.
In a case where XAG/USD crosses the weekly trading range between $22.10 and $22.60, described by the 61.8% and 50% Fibonacci retracement levels respectively, the metal price could aim for the $23.00 round figure.
Following that, multiple hurdles near $23.10-15 could test the upside momentum before directing the quote to the $24.50 hurdle. Also acting as an upside filter is the monthly peak of $24.63.
On the flip side, a clear break of the $22.10 range support needs validation from the $22.00 round figure to convince the Silver bears.
In that case, the November 24 high near $21.70 and November 29 swing low near $20.90 could act as intermediate halts ahead of highlighting the $20.00 psychological magnet for the XAG/USD sellers.
Silver: Four-hour chart
Trend: Further downside 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.
