Silver Price Analysis: XAG/USD rebound needs validation from $20.30
- Silver extends the week-start recovery towards short-term key hurdle.
- 100-HMA, weekly resistance line challenge buyers amid bullish MACD signals.
- Nearby support line restricts immediate downside ahead of the multi-month low.
Silver Price (XAG/USD) remains on the front foot at around $20.10 during early Tuesday morning in Europe. In doing so, the bright metal rises towards the key $20.30 resistance confluence of late.
Bullish MACD signals and the metal’s ability to stay beyond the immediate support line, near $20.00, keeps the XAG/USD buyers hopeful of overcoming the key hurdle comprising the 100-HMA and one-week-old descending trend line.
Following that, a run-up towards the 200-HMA and 61.8% Fibonacci retracement of June 27 to July 01 downside, near $20.80, appears imminent.
If silver buyers keep reins past $20.80, the run-up could easily cross the $21.00 threshold to direct the upside towards the late June swing high near $22.00.
On the contrary, the aforementioned support line, at $20.00 now, could challenge silver sellers from retaking control.
In a case where the XAG/USD drops past $20.00, the recently refreshed two-year low, around $19.40, will be in focus ahead of the year 2020 peak surrounding $19.00.
To sum up, silver prices are likely to extend the latest recovery but need validation from $20.30.
Silver: Hourly chart
Trend: Limited 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.
