Silver Price Analysis: XAG/USD tanks as the US Dollar stages a comeback, despite poor US data

XAG/USD drops from around $25.40s to $24.10s as US inflation cools and the labor market eases.
The RSI indicator and 3-day RoC portray a bearish outlook for Silver, with the 200-DMA on sight.

Christian Borjon Valencia FXStreet

Silver price plummets across the board, as data from the United States (US) showed that inflation is cooling down, while the labor market commences easing amidst US Federal Reserve (Fed) officials complaining about its tightness. US Treasury bond yields drop, but the US Dollar (USD) rises to new weekly highs, a headwind for XAG/USD prices. At the time of writing, the XAG/USD is trading at around $24.20, slides 4.50%.

XAG/USD Price Analysis: Technical outlook

The XAG/USD collapse dragged prices into testing the 50-day Exponential Moving Average (EMA), breaking on its way south two crucial support levels: firstly, the 20-day EMA gave way around $25.08, secondly the break of the two-week support trendline at around $24.63, which, accelerated the white metal downtrend, towards testing additional key support levels.

Silver is challenging a five-month-old previous resistance trendline, turned support at around $24.20, which, once broken, the XAG/USD could drop to the $24.00 figure, followed by the 100-day EMA at $23.46. A breach of the latter will expose the 200-day EMA at $22.74.

Conversely, if XAG/USD reclaims $24.63, that could pave the way toward $25.00 a troy ounce. That would form a bullish hammer, shifting Silver’s bias to the upside, and it might open the door to test the year-to-date (YTD) high of $26.13.

The Relative Strength Index (RSI) indicator turned bearish after crossing the 50-midline. The 3-day Rate of Change (RoC) portrays sellers in charge as the XAG/USD extends its slide throughout the day.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	24.18
Today Daily Change	-1.21
Today Daily Change %	-4.77
Today daily open	25.39

Trends
Daily SMA20	25.32
Daily SMA50	23.75
Daily SMA100	23.39
Daily SMA200	21.81

Levels
Previous Daily High	25.92
Previous Daily Low	25.22
Previous Weekly High	26.14
Previous Weekly Low	24.58
Previous Monthly High	26.09
Previous Monthly Low	23.57
Daily Fibonacci 38.2%	25.49
Daily Fibonacci 61.8%	25.66
Daily Pivot Point S1	25.1
Daily Pivot Point S2	24.81
Daily Pivot Point S3	24.4
Daily Pivot Point R1	25.8
Daily Pivot Point R2	26.21
Daily Pivot Point R3	26.5

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.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.