Silver Price Analysis: XAG/USD stays pressured around $22.00, approaches monthly support
- Silver prices remain depressed below one-week-old descending trend line despite repeated bounces off 100-SMA.
- Sluggish RSI, MACD hints at the continuation of a slow grind to the south.
- 200-SMA adds to the upside filter, monthly low lures bears.
Silver Price (XAG/USD) holds lower ground near $22.00 during Thursday’s initial Asian session, following the biggest daily loss of the week.
In doing so, the bright metal approaches a short-term key support line while consolidating the weekly gains.
Also supporting the gradual weakness is the recently steady RSI (14), as well as sluggish MACD.
On breaking the aforementioned one-month-old support line, near $21.90 by the press time, the XAG/USD prices could drop towards the monthly low surrounding $21.40.
Following that, the 61.8% Fibonacci retracement of the May 13 to June 06 upside, around $21.25, will gain the market’s attention ahead of directing silver sellers towards the $21.00 threshold.
Meanwhile, the 200-SMA and a weekly resistance line restrict short-term upside moves of the silver prices, respectively around $22.15 and $22.20.
Also acting as an upside filter is the monthly peak of $22.51, a break of which could quickly propel the quote towards May’s top near $23.30.
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.
