Silver Price Analysis: XAG/USD soars to three-week high, pushed by US employment report

Silver breaks through ley technical levels, eyes resistance at $24.49.
Buyers dominate XAG/USD market as RSI crosses 50-midline.
Falling below the EMA confluence at $23.88-$23.76 could challenge $23.25 weekly lows.

Christian Borjon Valencia FXStreet

Silver price skyrockets following a worse-than-expected employment report in the United States (US), which sent US bond yields plunging, a headwind for the US Dollar (USD). Therefore, XAG/USD is advancing sharply to new three-week highs, exchanging hands at around $24.18.

XAG/USD Price Analysis: Technical outlook

XAG/USD shifted from neutral biased to upwards, claiming essential technical levels on its way north but capped by resistance at April 25 daily low at $24.49. XAG/USD’s jump in price action spurred a reaction in oscillators, with the Relative Strength Index (RSI) indicator crossing above the 50-midline, while the three-day Rate of Change (RoC) depicts buyers in charge.

Therefore, the XAG/USD path of least resistance is upwards. That said, the XAG/USD first resistance would be $24.49, followed by the $25.00 figure. Once cleared, Silver could rally toward the May 11 high at $25.47, followed by the May 10 swing high at $25.91.

Conversely, if XAG/USD drops below the confluence of the 50 and 20-day Exponential Moving Averages (EMAs) at $23.88-$23.76, that could open the door to challenging weekly lows of $23.25.

XAG/USD Price Action – Daily chart

XAG/USD

Overview
Today last price	24.23
Today Daily Change	0.79
Today Daily Change %	3.37
Today daily open	23.44

Trends
Daily SMA20	23.56
Daily SMA50	24.47
Daily SMA100	23.34
Daily SMA200	22.2

Levels
Previous Daily High	24.06
Previous Daily Low	23.4
Previous Weekly High	24.02
Previous Weekly Low	22.93
Previous Monthly High	26.14
Previous Monthly Low	22.68
Daily Fibonacci 38.2%	23.65
Daily Fibonacci 61.8%	23.81
Daily Pivot Point S1	23.21
Daily Pivot Point S2	22.98
Daily Pivot Point S3	22.56
Daily Pivot Point R1	23.86
Daily Pivot Point R2	24.28
Daily Pivot Point R3	24.51

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.

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