Silver Price Analysis: XAG/USD struggles near multi-week low, bearish bias remains

Silver oscillates in a narrow band above its lowest level since June 30 set on Monday.
The setup remains tilted in favour of bears and supports prospects for further losses.
Attempted recovery towards the $23.00 mark could be seen as a selling opportunity.

Haresh Menghani FXStreet

Silver struggles to capitalize on the previous day's modest bounce from the $22.35 region, or its lowest level since June 30 and oscillates in a narrow band through the early part of the European session on Tuesday. The white metal currently trades just above the mid-$22.00s and remains vulnerable to prolong the recent downward trajectory witnessed over the past four weeks or so.

Last week's breakdown through a short-term ascending trend line support extending from the June swing low and a subsequent slide below the very important 200-day Simple Moving Average (SMA) was seen as a fresh trigger for bearish traders. Adding to this, technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. This, along with the lack of any meaningful buying, suggests that the path of least resistance for the XAG/USD is to the downside.

Hence, some follow-through weakness back towards retesting the multi-month low, around the $22.15-$22.10 area touched in June, looks like a distinct possibility. This is closely followed by the $22.00 mark, below which the white metal could accelerate the fall towards the $21.55-$21.50 intermediate support en route to the $21.00 mark. The XAG/USD could extend the slide further towards the $21.00 round figure en route to the YTD low, or levels just below the $20.00 psychological mark touched in March.

On the flip side, attempted recovery is likely to confront some resistance near the overnight swing low, around the $22.75 region, ahead of the $23.00 round figure. Any subsequent move up might still be seen as a selling opportunity and remain capped near the $23.20-$23.30 confluence support breakpoint, now turned resistance. The latter should act as a pivotal point, which if cleared decisively might trigger a short-covering move and lift the XAG/USD to the $23.60-$23.65 horizontal barrier. Bulls might then aim to reclaim the $24.00 mark.

Silver daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	22.6
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	22.6

Trends
Daily SMA20	23.93
Daily SMA50	23.64
Daily SMA100	24.05
Daily SMA200	23.26

Levels
Previous Daily High	22.76
Previous Daily Low	22.37
Previous Weekly High	23.68
Previous Weekly Low	22.58
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	22.52
Daily Fibonacci 61.8%	22.61
Daily Pivot Point S1	22.39
Daily Pivot Point S2	22.18
Daily Pivot Point S3	21.99
Daily Pivot Point R1	22.79
Daily Pivot Point R2	22.97
Daily Pivot Point R3	23.18

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold remains depressed below $4,650 on firmer USD; looks to US PCE for Fed rate outlook

Gold sticks to modest losses below $4,650 heading into the European session, though it lacks bearish conviction and remains confined within the previous day's broader range. The US Dollar regains positive traction amid some repositioning ahead of the US Personal Consumption Expenditures Price Index and is seen as weighing on the commodity. Adding to this, Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday might offer more cues about the interest rate path.

Hyperliquid eyes record high on rising revenue, ETF inflows

Hyperliquid (HYPE) is up 4% with bulls aiming to advance last week’s 43% gains to a fresh record high above $83.30. The “Everything Exchange” is gaining institutional and user demand, with Exchange Traded Funds recording daily inflows of over $5 million in each of the last two days, while printing daily revenue of over $2.75 million over the last seven days.

US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States Bureau of Economic Analysis is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. PCE inflation data for July is expected to reveal that price pressures remain high, well above the Fed’s 2% target.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.