Silver Price Analysis: XAG/USD grinds within weekly triangle around mid-$25.00s as US inflation looms
- Silver price portrays pre-data anxiety inside weekly symmetrical triangle, 100-SMA, 200-SMA adds strength to the breakout points.
- Steady RSI suggests further grinding of XAG/USD price, highlighting the importance of US CPI for April.
- Multiple trading filters stand tall to challenge commodity prices while buyers keep the reins.
Silver price (XAG/USD) aptly depicts the market’s cautious mood as traders brace for the all-important US inflation data, namely Consumer Price Index (CPI) for April, amid the early European session on Wednesday. In doing so, the bright metal seesaws within a symmetrical triangle comprising multiple levels marked since Monday, making rounds to $25.60-50 by the press time.
Apart from the aforementioned weekly symmetrical triangle, the 100-SMA and the 200-SMA also restrict the short-term XAG/USD moves between $25.70 and $25.40 in that order. That said, the steady RSI (14) line and the commodity’s sustained trading near the multi-month top marked the last week keep the Silver buyers hopeful.
Also acting as a short-term upside filter is a one-week-old horizontal area near $25.90 and the $26.00 round figure, not to forget the tops marked in April, as well as in the last week, around $26.10-15.
On the contrary, a clear downside break of $25.40 isn’t a welcome sign for the Silver sellers as the 61.8% Fibonacci retracement level of April 25 to May 05 moves, near $25.10.
It’s worth mentioning that the previous monthly low joins multiple tops marked during early 2023 to highlight the $24.50 level as an important support for the Silver bears to watch for entries.
Overall, the Silver price remains on the bull’s radar despite the latest inaction.
Silver price: Hourly chart
Trend: Gradual upside 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.
