- Silver Price remains on the front foot for third consecutive day after bouncing off Golden Fibonacci ratio.
- Upbeat oscillators, 10-DMA breakout favor XAG/USD buyers to approach $23.30 resistance confluence.
- Sellers need validation from $22.00 to retake control.
Silver Price (XAG/USD) prints mild gains around $22.80 as it prints a three-day winning steak amid early Monday in Asia. In doing so, the bright metal not only justifies Friday’s daily closing beyond the 10-DMA but also extends the previous week’s rebound from the 61.8% Fibonacci retracement of the March–May upside, also known as the “Golden Fibonacci Ratio”.
Adding credence to the bullish bias is the RSI (14) line’s gradual recovery from the oversold territory, as well as the easing bearish bias of the MACD signals.
As a result, the Silver Price is likely to regain the $23.00 mark.
However, a convergence of the 200-DMA and previous support line from early March, close to $23.30 by the press time, appears a tough nut to crack for the XAG/USD bulls before retaking control.
On the contrary, a daily closing beneath the stated “Golden Fibonacci Ratio” of around $22.25 isn’t an invitation to the Silver sellers as the lows marked in late March and June around $22.10, quickly followed by the $22.00 round figure will restrict the metal’s further downside.
In a case where the XAG/USD drops below $22.00, it becomes vulnerable to plunge toward an early March swing low of around $21.30.
Silver Price: Daily chart
Trend: Limited recovery expected
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.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.