Silver Price Analysis: XAG/USD looks set to reclaim $26.00 despite overbought RSI

Silver price remains firmer around the highest levels in a year, seesaws of late.
Clear upside break of previous key resistance lines, bullish MACD signals favor buyers to aim for April 2022 high.
Overbought RSI can test the XAG/USD bulls around $26.00 round figure.

Anil Panchal FXStreet

Silver price (XAG/USD) clings to mild gains around $25.50-55 during early Thursday as bulls take a breather after refreshing the highest levels in a year the previous day. Also challenging the immediate XAG/USD upside is the overbought RSI (14) line.

However, a clear upside break of the one-week-old descending resistance line, now immediate support near $25.45, joins sustained trading beyond a one-month-old ascending trend line, close to $25.15, to keep the Silver buyers hopeful.

It’s worth noting that the precious metal’s successful U-turn from the previous resistance line from late March, around $25.10 by the press time, also challenges the Silver sellers.

In a case where the Silver price remains downbeat past $25.10, the $25.00 round figure and the 100-SMA support of $23.35 will act as the last defense of the XAG/USD bulls.

On the flip side, the $26.00 round figure may join the overbought RSI (14) to challenge the Silver buyers, a break of which could propel the XAG/USD price towards the April 2022 high of near $26.25.

Following the previous yearly high of around $26.95 and the $27.00 threshold will be in focus.

Overall, the Silver price remains on the bull’s radar despite the latest inaction around the multi-day top.

Silver price: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	25.54
Today Daily Change	0.04
Today Daily Change %	0.16%
Today daily open	25.5

Trends
Daily SMA20	23.62
Daily SMA50	22.38
Daily SMA100	22.85
Daily SMA200	21.19

Levels
Previous Daily High	25.67
Previous Daily Low	25.04
Previous Weekly High	25.14
Previous Weekly Low	23.57
Previous Monthly High	24.16
Previous Monthly Low	19.9
Daily Fibonacci 38.2%	25.43
Daily Fibonacci 61.8%	25.28
Daily Pivot Point S1	25.14
Daily Pivot Point S2	24.78
Daily Pivot Point S3	24.51
Daily Pivot Point R1	25.77
Daily Pivot Point R2	26.04
Daily Pivot Point R3	26.4

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 shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold: Sell-off meets support near $4,250… for now

Gold accelerates its downward trend on Monday, coming close to the $4,250 mark per troy ounce, or multi-week lows, on the back of the intense rebound in the US Dollar and US Treasury yields across the curve. The precious metal’s retracement comes on the back of steady speculation of an interest rate increase by the Fed and reignited inflation worries in response to the rally of crude oil prices.

Crypto Today: Bitcoin, Ethereum, XRP recover ahead of US Senate vote on CLARITY Act

Bitcoin edges higher, trading near $77,884 as of Monday, in tandem with broader gains across the cryptocurrency market. Ethereum and Ripple follow Bitcoin’s neutral-to-bullish trajectory, holding key support levels at $2,521 and $1.38, respectively.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.