Silver Price Analysis: XAG/USD stays defensive around 100-SMA
- Silver seesaws around short-term key SMA, keeps Monday’s support break.
- Bearish MACD adds to the downside bias targeting 200-SMA.
- Weekly resistance line adds to the upside filters.
Silver (XAG/USD) licks its wounds around $25.00 following the biggest daily fall in six weeks. In doing so, the bright metal takes rounds to the 100-SMA during Tuesday’s Asian session.
However, a clear downside break of the support-turned-resistance from late January joins bearish MACD signals to keep XAG/USD sellers hopeful.
That said, the 50% Fibonacci retracement (Fibo.) of January-March upside, near $24.45, will offer an intermediate halt during the quote’s downside towards the 200-SMA, close to $24.10 at the latest.
It’s worth noting that the $24.00 threshold and 61.8% Fibo. near $23.90 will challenge the XAG/USD bears afterward.
Meanwhile, recovery moves need to cross the previous support line, around $25.25 at the latest.
Even so, a one-week-old downward sloping resistance line, around $25.65, followed by the $26.00 round figure, will test the silver buyers.
Silver: Four-hour 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.
