- Silver trips and tumbles in Monday trading, heading towards $23.00.
- The XAG/USD failed to capture $23.80 on Friday, and Silver is heading back into recent swing low territory.
- A bouncing US Dollar Index is seeing the XAG/USD take a step lower.
Silver is falling further back to kick off the new trading week, testing into familiar lows after last Friday's bounce couldn't be sustained.
The Federal Reserve (Fed) is set to see interest rates holding higher for longer than previously expected, and the boost to the US Dollar Index (DXY) is capping off recent upside swings for the XAG/USD.
After the Fed upped their interest rate forecast, or "dot plot" last week, the US central bank expects interest rates to only decline half a percent by the end of 2024. The Federal Open Market Committee (FOMC) previously saw end-2024 rates at 4.6%, but sticky inflation complications saw the Fed up their forecast to 5.1%.
XAG/USD technical outlook
On the hourly candles, Silver is looking to build a floor near the 200-hour Simple Moving Average (SMA) near $23.15 after tumbling around 2.5% from Monday's highs near $23.65.
Intraday upside momentum will be looking to recapture familiar territory north of the 100-hour SMA currently settling near $23.35.
Silver is suffering from a notable lack of meaningful trend momentum in the long-term, with the XAG/USD cycling the 200-day SMA on daily candlesticks.
Price action is constrained to the middle as Silver consolidates, with lower highs and slightly higher lows trapping XAG/USD into the midrange.
Swing lows are pricing in near $22.40, with the top end set to run into a descending trendline near $24.40.
XAG/USD daily chart
XAG/USD technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
BoE maintains bank rate at 4.25%, Pound Sterling holds steady – LIVE
The Bank of England (BoE) left the policy rate unchanged at 4.25% as widely anticipated. Three policymakers voted in favor of a rate cut. Pound Sterling struggles to gather strength with the immediate reaction and GBP/USD stays in daily range slightly above 1.3400.
EUR/USD stays defensive below 1.1500 amid light trading
EUR/USD holds the decline below 1.1500 in European trading on Thursday. The US Dollar holds the fort against the Euro amid a risk-off mood, fuelled by rising geopolitical tensions in the Middle East. Traders assess the latest ECB-speak amid thin trading conditions due to Juneteenth holiday in the US.
Gold price bounces off one-week low as risk-off impulse offsets USD strength
Gold price reverses an early European session dip to a one-week low and currently trades around the $3,366-3,367 area, nearly unchanged for the day amid mixed fundamental cues. The Federal Reserve's hawkish pause on Wednesday assists the US Dollar to build on its recent recovery from a three-year low and contributes to the non-yielding yellow metal's intraday slide.
Bitcoin on the verge of a breakdown amid possible US strike on Iran
Bitcoin price finds support around the 50-day EMA at $103,100; a decisive close below this level could trigger a sharp correction. Reports that US officials are preparing for a strike on Iran in the coming days could further weigh on sentiment.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.