Silver Price Analysis: XAG/USD slides as US economic optimism hurts precious metals

Silver prices fall for a second day on positive US news and Fed tightening speculations, with XAG/USD trading at $22.57.
Drifting below the 200-day EMA and a negative Rate of Change suggest XAG/USD will likely continue its downward trend.
AG/USD eyes support at $22.11 and resistance at the $23.00 mark, with further movement influenced by the 200-day EMA.

Christian Borjon Valencia FXStreet

Silver price slides for the second consecutive day due to positive news from the United States (US), which cooled recessionary fears while increasing speculations of further tightening by the US Federal Reserve (Fed). Therefore, the XAG/USD is trading at $22.57, down 0.56%

XAG/USD Price Analysis: Technical outlook

In the medium term, the XAG/USD is set to continue to trend lower after drifting below the 200-day Exponential Moving Average (EMA)

The XAG/USD would likely continue to trend lower in the medium term after breaching the 200-day Exponential Moving Average (EMA). In addition, the May 26 daily low of $22.68 was surpassed, seen as the latest support before the XAG/USD extended its fall toward the March 16 daily low of $21.47.

Further cementing the bearish case is the Relative Strength Index (RSI), sitting below its neutral line, while the three-day Rate of Change (RoC) shifted negatively, a sign that sellers are in charge.

The XAG/USD first support would be the June 23 swing low of $22.11. A breach of the latter will expose the $22.00 figure, followed by the abovementioned March 16 swing low of $21.47, before dropping towards the $21.00 figure.

If the XAG/USD reclaims the 200-day EMA, the next resistance would ev the $23.00 mark before testing the 20-day EMA at $23.19.

XAG/USD Price Action – Daily chart

XAG/USD

Overview
Today last price	22.58
Today Daily Change	-0.12
Today Daily Change %	-0.53
Today daily open	22.7

Trends
Daily SMA20	23.46
Daily SMA50	24.04
Daily SMA100	23.34
Daily SMA200	22.54

Levels
Previous Daily High	22.96
Previous Daily Low	22.56
Previous Weekly High	24.2
Previous Weekly Low	22.11
Previous Monthly High	26.14
Previous Monthly Low	22.68
Daily Fibonacci 38.2%	22.72
Daily Fibonacci 61.8%	22.81
Daily Pivot Point S1	22.52
Daily Pivot Point S2	22.34
Daily Pivot Point S3	22.12
Daily Pivot Point R1	22.92
Daily Pivot Point R2	23.14
Daily Pivot Point R3	23.32

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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