Silver Price Analysis: XAG/USD stills negative around $20.80s after jumping off a two-week low

Silver Price forms a candlestick hammer in the daily chart after hitting a two-week low at around $20.50s.
The Relative Strength Index on the hourly chart crossed the 50-midline, bolstering XAG.
If XAG/USD breaks above $20.90s, Silver will rally toward $21.00; otherwise, it will consolidate around $20.50.

Christian Borjon Valencia FXStreet

Silver Price prolongs its losses after rallying to a multi-month high around $22.25, and plunges below the 200-day Exponential Moving Average (EMA), as broad US Dollar (USD) strength weighs on the white metal. Hence, the XAG/USD is trading at $20.85, beneath its opening price by 0.56%, after hitting a daily high of $21.00 a troy ounce.

Silver Price Analysis: Technical outlook

From a technical perspective, the XAG/USD is neutral-to-upward biased, as shown by the daily chart. On Monday, the XAG/USD broke below the October 4 swing high of $21.24, exacerbating a fall below the $21.00 mark. Even though the white metal achieved a fresh two-week low of $20.58, the Silver Price is forming a hammer, meaning that buyers stepped in around $20.50 as they prepare to assault the 200-day ENA at $21.41.

In the near term, the XAG/USD hourly chart portrays Silver bottoming around the S2 daily pivot around $20.60, further supported by the Relative Strength Index (RSI), crossing above the 50-midline. At the same time, the XAG/USD tests the confluence of a resistance trendline and the 50-hour EMA around $20.92, which, once cleared, will expose the $21.00 psychological price level.

That said, the XAG/USD first resistance would be the previously mentioned confluence, followed by $21.00, the intersection of the R1 daily pivot, and the 100-hour EMA at $21.20. On the flip side, the XAG/USD first support would be the S1 pivot at $20.76, followed by the S2 daily pivot at $20.57.

Silver Key Technical Levels

XAG/USD

Overview
Today last price	20.89
Today Daily Change	-0.01
Today Daily Change %	-0.05
Today daily open	20.9

Trends
Daily SMA20	20.44
Daily SMA50	19.78
Daily SMA100	19.51
Daily SMA200	21.43

Levels
Previous Daily High	21.3
Previous Daily Low	20.84
Previous Weekly High	22.25
Previous Weekly Low	20.75
Previous Monthly High	21.24
Previous Monthly Low	18.09
Daily Fibonacci 38.2%	21.02
Daily Fibonacci 61.8%	21.12
Daily Pivot Point S1	20.73
Daily Pivot Point S2	20.56
Daily Pivot Point S3	20.28
Daily Pivot Point R1	21.19
Daily Pivot Point R2	21.47
Daily Pivot Point R3	21.64

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD hangs below mid-0.7100s amid bullish USD, ahead of FOMC meeting

AUD/USD remains on the back foot during the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. However, rising RBA rate-hike bets could limit deeper losses for the Aussie.

USD/JPY sticks to gains near mid-154.00s as traders await Fed/BoJ meetings

USD/JPY attracts some buyers for the second straight day on Tuesday, though it remains below a one-week high touched the previous day as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the currency pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and cap spot prices.

Gold seems vulnerable below $4,300 as traders await FOMC meeting

Gold struggles below $4,300 during the Asian session on Tuesday and remains vulnerable near a one-month low, touched the previous day. Fed rate-hike expectations and inflation concerns remain supportive of elevated US bond yields, underpinning the US Dollar and weighing on the non-yielding bullion. Bears, however, might wait for the outcome of a two-day FOMC meeting on Wednesday before placing fresh bets.

Bitcoin pushes past $79K as markets anticipate Fed meeting, Strategy stays put

Bitcoin rose above $79,000 on Monday as the broader crypto market enters a closely watched week for policymakers. According to QCP analysts, markets have largely priced in a 25-basis-point Federal Reserve rate increase after the release of August inflation data last week. The focus has shifted toward how policymakers communicate their outlook for future rate moves.

Eight reasons why the Fed should raise rates

The FOMC meeting on September 15–16 is expected to mark a turning point with the Fed’s first rate hike since May 2023. While there may have been economic reasons to hold off and maintain the status quo until now (some negative signals on the employment front and some encouraging ones on the inflation front), the conditions for a necessary recalibration now appear to be in place.

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.