Silver Price Analysis: XAG/USD rebound needs validation from $24.20 and US inflation
- Silver Price picks up bids to reverse week-start losses, bounce off 100-HMA.
- Convergence of 50-HMA, descending trend line from Friday restricts immediate XAG/USD as US CPI looms.
- 200-HMA, two-week-old ascending support line adds to the downside filters.
- Upbeat oscillators, sustained trading beyond key technical levels keep Silver buyers hopeful.
Silver Price (XAG/USD) remains on the front foot around $24.10 as it renews its intraday high to reverse the week-start losses amid early Tuesday in Asia.
In doing so, the bright metal extends the late Monday’s rebound from the 100-Hour Moving Average (HMA). Adding strength to the upside momentum are the bullish signals on the MACD indicator and a near 50 level of the RSI (14) line.
However, the 50-HMA and a falling trend line from Friday join the market’s likely cautious mood ahead of the US Consumer Price Index (CPI) for May to challenge the Silver Price upside past the $24.20 resistance confluence.
Also read: US Inflation Preview: Why the US Dollar is more likely to fall than rise, three scenarios
That said, a clear upside break of $24.20 won’t hesitate to challenge the monthly high marked on Friday around $24.52 while targeting the $25.00 round figure.
It’s worth noting that the Silver Price upside beyond $25.00 will be critical as it will enable the bulls to once again prod the tops marked in April and May, around $26.10-15.
Meanwhile, the $24.00 round figure restricts immediate declines of the Silver prices ahead of the 100-HMA support of around $23.95.
Even if the XAG/USD bears manage to conquer the $23.95 support, the 200-HMA and an upward-sloping support line from May 26, respectively near $23.80 and $23.65, will limit the downside move before giving control to the sellers.
Silver Price: Hourly chart
Trend: Further 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.
