Silver Price Analysis: XAG/USD struggles to gain traction despite USD weakness
- XAG/USD remains on track to close unchanged on Monday.
- Initial resistance for silver is located at $22.75.
- A daily close below $22.00 is likely to attract sellers.
After closing the last two trading days of the previous week in the positive territory, silver struggled to preserve its bullish momentum on Monday and was last seen posting small daily gains at $22.58. Although the US Dollar Index is losing more than 0.3% on a daily basis, the XAG/USD pair is having a difficult time gaining traction in the risk-averse environment at the start of the week.
Silver technical outlook
Despite Monday's choppy action, the Relative Strength Index (RSI) indicator on the four-hour chart holds near 60, suggesting that sellers are currently not interested in the pair. On the upside, the initial resistance is located at $22.75, where the 100-period SMA is located. In case buyers manage to lift the price above that level, the next target aligns at $23.00 (psychological level, static resistance) ahead of $23.40 (200-period SMA).
On the downside, the 50-period SMA is acting as dynamic support at $22.40 before $22.00 (psychological level, static support). A daily close below the latter could cause the near-term technical outlook to turn bearish and open the door for additional losses toward $21.40, the 15-month low set in late September.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
