Silver Price Analysis: XAG/USD slides towards $23.00 on short-term support break

Silver price snaps three-day uptrend on breaking a fortnight-old support line.
Nearly overbought RSI adds strength to the pullback moves targeting 61.8% Fibonacci retracement.
Convergence of 50-DMA, 50% Fibonacci retracement acts as an important support, XAG/USD bulls need validation from $23.50.

Anil Panchal FXStreet

Silver price (XAG/USD) prints the first daily loss in four as the bright metal drops to $23.15 during early Monday in Asia. In doing so, the bright metal remains depressed after two consecutive weekly losses while justifying Friday’s downside break of a short-term key support line.

Not only a downside break of the two-week-old ascending support line, now resistance near $23.50, but the RSI (14) line’s placement near the oversold territory also teases the XAG/USD sellers.

As a result, the bright metal appears well-set to drop towards the 61.8% Fibonacci retracement level of its February-March downside, near $22.85.

However, the 50% Fibonacci retracement and the 50-DMA, around $22.30-20, could together challenge the Silver bears afterward.

It’s worth noting that the XAG/USD weakness past $22.20 makes it vulnerable to drop toward the early-month swing high of around $23.20 while the 200-DMA support of $21.00 could restrict the commodity’s further downside.

On the flip side, recovery moves remain elusive unless the quote stays beyond the previous support line, now resistance around $23.50.

Following that, multiple hurdles around $24.00 and $24.20 can test the Silver buyers before challenging the yearly high of around $24.65.

Overall, the Silver price flags the risk of further downside but the room towards the south appears limited.

Silver price: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	23.19
Today Daily Change	-0.05
Today Daily Change %	-0.22%
Today daily open	23.24

Trends
Daily SMA20	21.51
Daily SMA50	22.24
Daily SMA100	22.48
Daily SMA200	20.98

Levels
Previous Daily High	23.52
Previous Daily Low	22.97
Previous Weekly High	23.52
Previous Weekly Low	22.16
Previous Monthly High	24.64
Previous Monthly Low	20.42
Daily Fibonacci 38.2%	23.31
Daily Fibonacci 61.8%	23.18
Daily Pivot Point S1	22.97
Daily Pivot Point S2	22.69
Daily Pivot Point S3	22.41
Daily Pivot Point R1	23.52
Daily Pivot Point R2	23.8
Daily Pivot Point R3	24.08

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 trims some losses, bounces back to 0.7150

AUD/USD has traded on the back foot on Monday, coming close to the 0.7100 mark before rebounding toward the 0.7150 region ahead of the opening bell in Asia. The Greenback’s solid performance has kept the risk complex under pressure, sending the Aussie to fresh monthly lows on the back of rising bets for a Fed rate hike this week. on Tuesday, investors are now expected to closely follow key data releases in China.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold retests $4,300; USD losses momentum

Gold picks up fresh upside traction and challenges the key $4,300 mark per troy ounce on Monday. The yellow metal, however, remain on the back foot on the back of marked gains in the US Dollar and rising US Treasury yields across the curve.

JasmyCoin: Upbit delisting raises risk of further losses

JasmyCoin shows signs of stability at the time of writing on Monday. However, the token remains constrained between support at $0.0035 and resistance at $0.0040. Since May, its technical structure has continued to deteriorate, with the price falling from highs of $0.0078. JASMY’s outlook suggests that bears have the upper hand as bulls fight to defend key support levels.

Will the Fed deliver the hawkishness markets are pricing in?

Fed hike bets increase after PPI and CPI reports. Updated dot plot to be crucial for the dollar’s reaction. Warsh’s independence faces test amid Trump’s pressure for lower rates. For the Dollar to extend gains, Fed needs to satisfy current hawkish bets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.