• Silver edged lower for the second successive day and dropped back closer to a one-week low.
  • The set-up remains tilted in favour of bearish traders and supports prospects for further losses.
  • Sustained strength beyond the $22.00 mark is needed to negate the near-term negative outlook.

Silver struggled to capitalize on the previous day's late rebound from a one-week low and edged lower for the second successive day on Thursday. The white metal remained on the defensive through the early European session and was last seen trading around the $21.35-$21.30 region.

Given that the XAG/USD has repeatedly failed to find acceptance above the 200-period SMA on the 4-hour chart and faced rejection near the $22.00 mark, the bias seems tilted in favour of bearish traders. The negative outlook is reinforced by the fact that oscillators on 4-hour/daily charts have again started drifting into the bearish territory.

Hence, a subsequent fall below the $21.00 round-figure mark, en-route the monthly low around the $20.90 region, now looks like a distinct possibility. The downward trajectory could further get extended and drag the XAG/USD back towards the YTD low, around the $20.45 region set in May. Bears might then aim to challenge the $20.00 psychological mark.

On the flip side, the $21.50-$21.55 region now seems to have emerged as immediate strong resistance. Any meaningful recovery attempted beyond the said barrier could be seen as a selling opportunity near the $21.75 region (200-period SMA). This, in turn, should cap the upside for the XAG/USD near the $21.90-$22.00 supply zone, at least for now.

The latter should act as a pivotal point, which if cleared decisively would negate the negative outlook and shift the bias in favour of bullish traders. The XAG/USD might then accelerate the positive momentum towards an intermediate resistance near the $22.30 area en-route the $22.50-$22.60 hurdle and the $23.00 round-figure mark.

Silver 4-hour chart

fxsoriginal

Key levels to watch

XAG/USD

Overview
Today last price 21.3
Today Daily Change -0.12
Today Daily Change % -0.56
Today daily open 21.42
 
Trends
Daily SMA20 21.79
Daily SMA50 22.45
Daily SMA100 23.5
Daily SMA200 23.35
 
Levels
Previous Daily High 21.69
Previous Daily Low 21.24
Previous Weekly High 22.02
Previous Weekly Low 20.9
Previous Monthly High 23.28
Previous Monthly Low 20.46
Daily Fibonacci 38.2% 21.41
Daily Fibonacci 61.8% 21.52
Daily Pivot Point S1 21.21
Daily Pivot Point S2 21
Daily Pivot Point S3 20.75
Daily Pivot Point R1 21.66
Daily Pivot Point R2 21.9
Daily Pivot Point R3 22.11

 

 

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 remains pressured below 0.6900 despite upbeat China PMI

AUD/USD remains pressured below 0.6900 despite upbeat China PMI

AUD/USD is off the lows but remains pressured below 0.6900 on a big beat on the Chinese Caixin Manufacturing PMI. The US dollar attempts a recovery amid risk-off trading, ahead of US ISM. Strong Aussie PMI, increasing odds of another 50 bps RBA rate hike fails to recall bulls. 

AUD/USD News

USD/JPY sinking towards overnight lows near 135.50

USD/JPY sinking towards overnight lows near 135.50

USD/JPY bears move in and the price heads towards overnight lows. The yen regathered below the 24-year peak of 137 vs. the dollar although the gap between a hawkish Federal Reserve and a dovish Bank of Japan continues to weigh heavily on the Japanese currency. 

USD/JPY News

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold Price remains pressured around the lowest levels in seven weeks after breaking the key support. US Dollar regains upside momentum, as recession woes favor the greenback. US ISM Manufacturing PMI for June could direct market moves.

Gold News

Will the ApeCoin price fall to $2 this summer

Will the ApeCoin price fall to $2 this summer

ApeCoin price shows incoming sell-off signals on the final day of June. It is best to wait for a breach of the invalidation level before counter-trend trading the Ethereum-based NFT Token. Invalidation of the bearish downtrend is a breach above $6.15.

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