Silver Price Analysis: XAG/USD trims its losses but remains exposed to sellers below the 200-DMA
- Silver price stopped its fall but remains shy of reclaiming the 200-EMA.
- A third daily close below the 200-day EMA will cement Sllver's price downward bias.
- Silver Price Analysis: Break below $21.40 would expose the $21.00 mark.
Silver price attempts to recover the 200-day Exponential Moving Average (EMA) but stays shy of reclaiming the $21.94 price level, which would underpin the XAG/USD towards the psychological $22.00 mark. Nevertheless, the Silver price registers gains, and the XAG/USD is trading at $21.71 after hitting a daily low of $21.44.
Once the XAG/USD extended its losses beyond the 200-day EMA, sellers faced difficulties dragging prices below the weekly low of $21.43. The Relative Strength Index (RSI) is in bearish territory but turned flat, meaning bears are getting a respite before re-attempting to drive prices toward the November 28 low at $20.87.
In the short term, the XAG/USD 1-hour chart suggests the pair is sideways. Even though the white metal dived towards the S1 daily pivot at $21.40, it encountered bids and climbed back above the daily pivot at $21.64. However, failure to crack the R1 daily pivot at $21.84 would keep the daily chart bias intact.
That said, the XAG/USD first support would be the daily pivot at $21.64, followed by the S1 pivot point at 21.40. A breach of the latter and the following line of defense for Silver bulls would be the S2 daily pivot at $21.19, followed by the S2 area at $20.96.
XAG/USD 1-Hour chat
XAG/USD Key technical levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
