Silver Price Analysis: XAG/USD resiliently rebounds, claims $23.00 amidst high US bond yields

Silver price returns from two-month lows, crosses the 200-day EMA and $23 threshold and ends the week with a 2.89% loss.
Despite US data supporting another Fed rate hike and subsequent rise in Treasury bond yields, silver price sustains an upward trajectory, targeting the 100-day EMA.
With the Relative Strength Index indicating potential silver weakness, downside risk remains.

Christian Borjon Valencia FXStreet

Silver price bounces off two-month-lows hit at $22.68, rallies sharply, and claims the 200-day Exponential Moving Average (EMA) at $22.82 and the $23.00 psychological figure on Friday’s mid-North American session. Although the white metal is gaining more than 1.90%, it is set to finish the week with losses of 2.89%. At the time of writing, XAG/USD is trading at $23.15.

Silver Price Analysis: XAG/USD technical outlook

Even though economic data from the United States (US) justifies another rate hike by the US Federal Reserve (Fed). Therefore, US Treasury bond yields are rising, underpinning the greenback. However, the XAG/USD ignored most factors that could drag the price low and rip higher, eyeing the 100-day Exponential Moving Average (EMA) at $23.47.

Nevertheless, the Relative Strength Index (RSI) is in bearish territory, warranting further Silver weakness, while the 3-day Rate of Change (RoC) has yet to reach neutral levels. Therefore, additional downside could be expected.

However, if XAG/USD clears the 100-day EMA, it would face sold resistance at the confluence of the 20 and 50-day EMAs at around $23.97-24.00. Once broken, the next supply zone would be the $25.00 mark.

On the flip side, and the path of least resistance in the near term, the XAG/USD first support would be $23.00, followed by $22.68, the current week’s low. A beach of the latter will expose the March 21 swing low of $22.14.

Silver Price Action – Daily chart

XAG/USD

Overview
Today last price	23.25
Today Daily Change	0.51
Today Daily Change %	2.24
Today daily open	22.74

Trends
Daily SMA20	24.47
Daily SMA50	24.34
Daily SMA100	23.36
Daily SMA200	22

Levels
Previous Daily High	23.15
Previous Daily Low	22.7
Previous Weekly High	24.21
Previous Weekly Low	23.33
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	22.87
Daily Fibonacci 61.8%	22.98
Daily Pivot Point S1	22.58
Daily Pivot Point S2	22.42
Daily Pivot Point S3	22.13
Daily Pivot Point R1	23.03
Daily Pivot Point R2	23.32
Daily Pivot Point R3	23.48

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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