Silver Price Analysis: XAG/USD remains trapped below $23


  • Silver's upside attempts capped below $22.80.
  • US dollar's strength weighs on precious metals.
  • XAG/USD: Moving sideways between $22.20 and $23.15.

Silver opened the week on a slightly positive tone although it was unable to extend past $22.80, amid a broad-based US dollar strength. The precious metal has retreated to the $22.65 area during the US trading session to remain practically unchanged on daily charts.

US dollar strength weighs on precious metals

Silver and precious metals, in general, remain on the defensive against a firmer US dollar with the market bracing for the official announcement of bonds-buying tapering by the Federal Reserve. The US Dollar Index has ticked up about 0.15% on Monday, to reverse the previous two days’ losses and approach year-to-date highs at 94.50

The US dollar has appreciated across the board on Monday. The investors have assumed that the discouraging US Non-Farm Payrolls report seen last Friday is unlikely to deter the Fed from announcing their plan to start rolling back the monetary stimulus at their next monetary policy meeting in November.

XAG/USD: consolidating between $22.20 and $23.15

From a technical perspective, the pair has been consolidating within a narrow range over the last week. On the upside, XAG/USD should breach September 22, October 8 highs, at $23.15 to increase bulls’ confidence, and attempt 14, 16 September highs, at $24.00 ahead of September 3 high at $24.87.

On the downside, immediate support lies at $22.15 (October 6 low) and below here, $21.37 (September 29 low) and 20.75 (50% Fibonacci retracement of the March-August 2020 rally.

Technical levels to watch

XAG/USD

Overview
Today last price 22.66
Today Daily Change -0.01
Today Daily Change % -0.04
Today daily open 22.67
 
Trends
Daily SMA20 22.68
Daily SMA50 23.49
Daily SMA100 24.99
Daily SMA200 25.64
 
Levels
Previous Daily High 23.19
Previous Daily Low 22.44
Previous Weekly High 23.19
Previous Weekly Low 22.21
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.9
Daily Fibonacci 61.8% 22.72
Daily Pivot Point S1 22.34
Daily Pivot Point S2 22.01
Daily Pivot Point S3 21.59
Daily Pivot Point R1 23.1
Daily Pivot Point R2 23.52
Daily Pivot Point R3 23.85

 

 

 

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