Silver Price Analysis: XAG/USD treads water above $19.50

Silver prices' recovery stalls at $19.50 area.
A weaker USD underpins the precious metals recovery.
XAG/USD needs to breach an important resistance hurdle at $19.65/75.

Guillermo Alcala FXStreet

Silver prices are trading higher for the second consecutive day on Wednesday, with the white metal extending its recovery from the $18.80 low on Tuesday to two-week highs at $1975, where it seems to have found a significant resistance hurdle.

USD weakness underpinning precious metals’ recovery

The XAG/USD appreciated earlier on Wednesday, fueled by a broad-based US dollar weakness, as the investors start to price in a slowdown on the Federal Reserve’s monetary tightening path.

The positive price action, however, has stalled right below the $19.65/75 area, where the 100-day SMA meets the 50% Fibonacci retracement level of the October 4-14 decline and the September 23 high.

A successful break above that area would put the pair aiming for the $20.00 psychological level (and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.

On the downside, the 50-day SMA, at $19.00 is defending the pair from further decline, so far, with the next potential support area at $18.80 (Oct 25 low) ahead of the October 14 low at $18.10.

XAG/USD daily chart

Technical levels to watch

XAG/USD

Overview
Today last price	19.56
Today Daily Change	0.22
Today Daily Change %	1.14
Today daily open	19.34

Trends
Daily SMA20	19.37
Daily SMA50	19.11
Daily SMA100	19.63
Daily SMA200	21.67

Levels
Previous Daily High	19.43
Previous Daily Low	18.79
Previous Weekly High	19.44
Previous Weekly Low	18.23
Previous Monthly High	20.02
Previous Monthly Low	17.56
Daily Fibonacci 38.2%	19.19
Daily Fibonacci 61.8%	19.04
Daily Pivot Point S1	18.94
Daily Pivot Point S2	18.55
Daily Pivot Point S3	18.3
Daily Pivot Point R1	19.59
Daily Pivot Point R2	19.83
Daily Pivot Point R3	20.23

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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