Silver Price Analysis: XAG/USD seems vulnerable, convincing break below $24.00 awaited

Silver comes under fresh selling pressure and reverses a part of Friday’s modest recovery gains.
The technical setup favours bearish traders and supports prospects for further near-term losses.
A sustained strength above the $25.00-$25.25 region is needed to negate the negative outlook.

Haresh Menghani FXStreet

Silver meets with a fresh supply on the first day of a new week and erodes a part of Friday's modest recovery gains from the vicinity of the $24.00 mark, or over a two-week low. The white metal maintains its offered tone through the early European session and currently trades around the $24.25 region, down nearly 0.50% for the day.

From a technical perspective, last week's failure ahead of the $25.00 psychological mark and the subsequent slump below the $24.30-$24.25 resistance-turned-support was seen as a fresh trigger for bearish traders. This, along with the emergence of fresh selling on Monday and negative oscillators on hourly charts suggest that the path of least resistance for the XAG/USD is to the downside.

That said, technical indicators on the daily chart - though have been losing traction - are yet to confirm the negative outlook. This makes it prudent to wait for a sustained break below the $24.00 mark before positioning for deeper losses. The XAG/USD might then turn vulnerable and accelerate the downfall towards testing the next relevant support near the $23.20-$23.15 area en route to the $23.00 mark.

The latter coincides with the very important 200-day Simple Moving Average (SMA), which if broken decisively should pave the way for a fall towards challenging the multi-month low, around the $22.15-$22.10 area touched in June.

On the flip side, the $24.30-$24.35 region might continue to act as an immediate hurdle ahead of the $24.60-$24.65 area. Some follow-through buying could lift the XAG/USD back to the $25.00 mark. This is followed by the monthly peak, around the $25.25 zone, which if cleared will negate the negative outlook. Silver might then surpass the $25.50-$25.55 hurdle and aim to reclaim the $26.00 mark.

Silver daily chart

Key levels to watch

XAG/USD

Overview
Today last price	24.25
Today Daily Change	-0.10
Today Daily Change %	-0.41
Today daily open	24.35

Trends
Daily SMA20	24.09
Daily SMA50	23.65
Daily SMA100	23.93
Daily SMA200	23.06

Levels
Previous Daily High	24.41
Previous Daily Low	24.09
Previous Weekly High	25.15
Previous Weekly Low	24.04
Previous Monthly High	24.53
Previous Monthly Low	22.11
Daily Fibonacci 38.2%	24.29
Daily Fibonacci 61.8%	24.21
Daily Pivot Point S1	24.16
Daily Pivot Point S2	23.97
Daily Pivot Point S3	23.84
Daily Pivot Point R1	24.48
Daily Pivot Point R2	24.6
Daily Pivot Point R3	24.79

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD climbs to two-day highs past 1.3200

GBP/USD picks up extra pace and surpasses the 1.3200 threshold on Thursday. That said, Cable manages to shrug off initial weakness and regain balance on the back of the fresh selling pressure hurting the Greenback.

EUR/USD stays consolidative around 1.1370

EUR/USD regains momentum and trades with modest gains around 1.1370 ahead of the opening bell in Asia. The pair sets aside three daily declines in a row and picks up pace on the back of the lacklustre performance of the US Dollar, particularly after US data failed to reinforce Fed rate hike bets.

Gold bounces from 2026 lows, remains pressured

Gold reverses part of its recent weakness on Thursday, managing to reclaim the area just above the $4,000 mark per troy ounce. The precious metal regains traction on the back of renewed selling interest in the Greenback, although expectations of rate hikes by the Fed are likely to keep buyers on the sidelines for now.

Three reasons to avoid buying Bitcoin at $60,000

Bitcoin (BTC) hovers around $62,000 on Thursday, recovering from a brief dip below $60,000 the previous day. Although dip buyers anticipate a rebound in BTC from its psychological support zone, bearish signals from the upcoming Bitcoin options expiry, Exchange Traded Funds (ETFs) outflows, and large-wallet investor activity warn that selling could snowball in the coming period.

Micron prints perfect, and now the chart has to answer

Memory’s biggest name just delivered the cleanest quarter of its life, and the most interesting thing about it is that the stock isn’t sure what to do with it. Micron closed out fiscal Q3 with revenue of $41.5 billion, up 346% on the year, a fifth straight record. Gross margin came in at 84.9%, up from 39% the same quarter a year ago. Earnings landed at $25.11 against a Street sitting near $20.49.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.