Silver Price Analysis: XAG/USD slumps below $23.50 ahead of the FOMC's decision
- Silver fails to hold to its earlier gains above the 20-day EMA, with traders eyeing $23.00.
- Silver Price Analysis: Consolidated, slightly skewed downwards, as oscillators turned bearish.
Silver price struggles at the 20-day Exponential Moving Average (EMA) at $23.66 and is dropping toward the lows of the day, at around $23.40s, as investors prepare for the US Federal Reserve’s (Fed) monetary policy decision. Therefore, XAG/USD traders are squaring their positions, awaiting Jerome Powell and his colleagues. At the time of writing, the XAG/USD exchanges hands at $23.44, below its opening price by 1.12%.
Silver Price Analysis: XAG/USD Technical Outlook
Silver remains pressured ahead of the FOMC’s decision, trapped within Tuesday’s price action, which witnessed a test of the 50-day Exponential Moving Average (EMA) at $23.11, though it was quickly rejected, achieving a daily close above the 20-day EMA. However, Wednesday’s story is different. The XAG/USD fell below Monday’s low of $23.54, eyeing to extend its losses toward the $23.00 figure.
Momentum indicators, like the Relative Strength Index (RSI), turned bearish, while the Rate of Change (RoC), suggests that sellers are gathering momentum.
Given the backdrop, the XAG/USD first support would be the $23.00 psychological level. A breach of the latter and the year-to-date (YTD) low at $22.76 is on the cards.
As an alternate scenario, the XAG/USD’s reclaiming the 20-day EMA will expose the $24.00 figure. Once cleared, Silver would test the YTD high at $24.54, followed by a rally to the $25.00 mark.
Silver Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
