Silver Price Analysis: XAG/USD retreats towards $25.00 on overbought RSI signals

Silver pares the biggest daily gains in a year, stays near six-month high flashed the last week.
Overbought RSI hints at a pullback towards the previous resistance line but buyers remain hopeful beyond 200-DMA.
61.8% Fibonacci retracement, July 2021 peak adds to the upside filters.

Anil Panchal FXStreet

Silver (XAG/USD) buyers take a breather around $25.30, down 0.70% intraday during Wednesday’s Asian session.

In doing so, the quote takes a U-turn from a weekly high to consolidate the biggest daily jump in 12 months, marked the previous day. Overbought RSI conditions add strength to the pullback moves.

However, the resistance-turned-support line from July 2021, near $24.25, followed by the 200-DMA level near $24.10, limits the short-term downside of the silver prices.

It’s worth noting that a monthly support line near $24.50 acts as extra support to challenge XAG/USD bears.

Alternatively, the previous week’s high around $25.65, also the highest since August 2021, challenge the silver buyers during the fresh upside.

In a case where XAG/USD bulls cross $25.65, the 61.8% Fibonacci retracement of May-September 2021 downside and July 2021 high, respectively around $26.00 and $26.80, will act as strong resistances.

Silver: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	25.29
Today Daily Change	-0.19
Today Daily Change %	-0.75%
Today daily open	25.48

Trends
Daily SMA20	23.68
Daily SMA50	23.32
Daily SMA100	23.42
Daily SMA200	24.15

Levels
Previous Daily High	25.54
Previous Daily Low	24.28
Previous Weekly High	25.62
Previous Weekly Low	23.7
Previous Monthly High	25.62
Previous Monthly Low	22.01
Daily Fibonacci 38.2%	25.06
Daily Fibonacci 61.8%	24.77
Daily Pivot Point S1	24.66
Daily Pivot Point S2	23.84
Daily Pivot Point S3	23.4
Daily Pivot Point R1	25.92
Daily Pivot Point R2	26.36
Daily Pivot Point R3	27.18

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.

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold: Sellers test $4,350 on renewed USD upside

Gold kicks off the new week on a weaker note following Friday's failure near the $4,400 mark. The commodity currently trades near the $4,350 level as traders await further developments surrounding the Middle East crisis and their implications for inflation. This would influence interest rate expectations and, in turn, drive the non-yielding bullion.

Dogecoin extends gains as ETF inflows return and momentum improves

Dogecoin extends its recovery, trading above $0.088 after gaining nearly 6% last week. The bullish price outlook is supported by the return of institutional demand through DOGE spot Exchange Traded Funds. Meanwhile, improving momentum indicators and signs of whale accumulation suggest a positive outlook for the dog-themed meme coin.

Economics week ahead

This week is light on the domestic data front, with focus on Thursday's new home sales report. We expect sales to partially recover in August, rising 2.6% to a 623K pace after a sharp decline in July. Higher mortgage rates continue to weigh on affordability and demand, though builder incentives remained in place and conditions did not worsen materially during the month.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.