Silver Price Analysis: XAG/USD reverses from six-week-old hurdle towards $22.00
- Silver price renews intraday low while taking a U-turn from the highest levels in 1.5 months.
- Overbought RSI allows XAG/USD sellers to sneak in from six-week-old horizontal resistance.
- Ascending support line from March 10, 200-EMA put a floor under the Silver price.
Silver price (XAG/USD) takes offers to renew intraday low near $22.40 as it reverses from the highest levels since early February as the Fed week begins.
In doing so, the bright metal reverses from the horizontal area comprising multiple tops marked since February 03, around $22.60.
It’s worth noting that the overbought conditions of the RSI (14) also help the XAG/USD to pare recent gains near the multi-day high.
However, bullish MACD signals and the metal’s sustained trading above the key supports keep the Silver buyers hopeful.
Among the immediate crucial support is a one-week-old ascending trend line, around $21.90, as well as the 200-bar Exponential Moving Average (EMA) surrounding $21.65.
It should be observed that the early month swing high near $21.30 and the $21.00 round figure can act as additional downside filters for the XAG/USD bears to watch before targeting the monthly low of $19.90.
Meanwhile, the Silver price run-up beyond the aforementioned resistance line surrounding $22.60 needs validation from the 61.8% Fibonacci retracement level of the metal’s February-March downside, near $22.85.
Following that, a run-up toward the Year-To-Date (YTD) high surrounding $24.65 can’t be ruled out.
Overall, the Silver price is likely to decline but the bears have a long way to ride before retaking control.
Silver price: Four-hour chart
Trend: Further downside expected
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.
