Silver Price Analysis: XAG/USD sellers approach $20.20 support confluence
- Silver price holds lower ground near the short-term key support comprising 50-day EMA, three-week-old ascending support line.
- Receding bullish MACD signals, sustained pullback from 61.8% Fibonacci retracement tease sellers.
- Bulls need validation from $21.00 to retake control.
Silver price (XAG/USD) remains pressured at around $20.30, keeping the previous day’s bearish bias during Friday’s Asian session. In doing so, the bright metal holds on to the latest downside break of the 50% Fibonacci retracement level of the June-July fall amid recently easing bullish signals of the MACD.
That said, the quote’s U-turn from the 61.8% Fibonacci retracement level earlier in the week also keeps XAG/USD sellers hopeful to conquer the $20.20 support confluence including the 50-DMA and an upward sloping trend line from July 25.
It’s worth noting that the silver sellers might search for the daily closing below the $20.00 threshold to validate the weakness past $20.20.
Following that, a south-run towards the five-week-long horizontal area near $19.55-45 can’t be ruled out.
Meanwhile, the 50% and the 61.8% Fibonacci retracement levels, respectively near $20.35 and $20.85 could restrict short-term upside moves of the silver price.
Should the quote manage to cross the $20.85 hurdle, the mid-June swing low near $21.00 will act as an extra filter to the north before directing the XAG/USD buyers towards the June 27 peak of $21.53.
Silver: Daily chart
Trend: Further weakness 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.
