- Silver price takes offers to refresh multi-day low during three-day downtrend.
- Clear break of six-month-old support line, the key Fibonacci retracement level joins bearish MACD signals to favor XAG/USD sellers.
- 200-DMA, monthly resistance line add to the upside filters.
Silver price (XAG/USD) remains depressed at the lowest levels in four months as sellers poke the $20.00 psychological magnet to refresh the multi-day low during Wednesday’s Asian session.
In doing so, the bright metal extends the previous day’s downside break of a six-month-old ascending support line, as well as the 61.8% Fibonacci retracement level of the metal’s run-up from September 2022 to February 2023. Adding strength to the downside bias are the bearish MACD signals.
It’s worth noting, however, that the RSI (14) is in the oversold territory and hence multiple supports around $19.80 and $19.60 could restrict short-term XAG/USD declines.
Following that, the 78.6% Fibonacci retracement level surrounding the $19.00 round figure could lure the Silver bears before directing them to the lows marked during the last October and September, respectively near $18.10 and $17.55.
Meanwhile, the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, could restrict short-term XAG/USD recovery at around $20.25 before the support-turned-resistance line from September 2022, close to $20.60 by the press time.
In a case where the Silver price remains firmer past $20.60, the 200-DMA and a one-month-old resistance line, around $21.00 and $21.20, may act as the last defenses of the XAG/USD bears.
Silver price: Daily chart
Trend: Further downside 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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 inflation forecast, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.