Silver Price Analysis: XAG/USD remains pledged to an overall bullish tone – DBS Bank

FXStreet Insights Team FXStreet

Silver’s 20.8% rally from the March lows of 23.78 has been contained at a Donchian resistance of 23.78. A weaker Relative Strenght Index (RSI) and Moving Average Convergence/Divergence (MACD) profile suggest some consolidation and retracement moves are ongoing. Nonetheless, in framing silver’s rise from March 2020s 11.64 lows, XAG/USD still holds an inherent bullish bias unless it breaks under 23.81, Strategist at DBS Bank Benjamin Wong reports.

Any retracement decline looks to find 26.05-26.27 support

“The technical indicators are hinting some near-term weakness as prices grapple with a weakened RSI and MACD profile.”

“June is typically a month of consolidation for precious metals. Hence, silver’s aged two-month uptrend should cool off for a bit of consolidation and retracement play.”

“Silver’s rise from the ashes of March 2020s 11.64 lows remain caged in a bullish setting unless it treks under 23.81 and a total lost cause is triggered if 20.75 is traded under. Fairly good support is accorded at the cloud support levels of 26.05-26.27. Additionally, the convergence of the 50-day moving average (DMA) 26.58 and the 100-DMA 26.48 is something to take note of.”

“With near-term technical indicators showing a weakened hold on prices by the bulls, one should expect some apples to fall off the tree before silver stabilises and regroup for a resumption of higher prices. A resumed rally should eye 30.72, the long term 50% Fibonnaci marker.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.