Silver Price Analysis: XAG/USD’s advance halts and finds support at the 20-day SMA

XAG/USD retreated more than 1% towards the $24.20 area, still holding the 20-day SMA.
USD is strong after the release of June’s JOLTS Job Opening and the ISM Manufacturing PMI.
Rising US Treasury yields are not allowing metals to find demand.

Patricio Martín FXStreet

On Tuesday, the XAG/USD Silver spot price significantly dropped, mainly due to the USD strength. Attention is on labour market data released as investors are modelling their expectations towards the next Federal Reserve (Fed) meeting. Meanwhile, the Greenback trades strong agains most of its rivals, with the USD DXY index rising towards the 102.30 area.

The US ISM July PMI came in slightly below expectations at 46.4 but higher than the previous reading of 46. JOLT's Job Openings missed expectations at 9.58M below the 9.62M. Its worth pointing out that Fed Chairman Powell stated that the economy holds resilient, but future decisions depend on incoming data, causing potential volatility in USD price dynamics on data releases. In that sense ADP job employment change, Jobless Claims, and Nonfarm Payrolls will be closely monitored this week for investors to start placing their bets on the next Fed meetings.

In the meantime, US yields are rising, which could be seen as the opportunity cost of holding non-yielding metals, are rising across the board. The 2-year yield remains steady at 4.88% while the 5 and 10 rates are at 4.22% and 4.02%, respectively, increasing more than 1%. In addition, the CME FedWatch tool indicates that investors are not so confident about a hike in September as their odds stand near 20% while the probabilities in November top out near 40%.

XAG/USD Levels to watch

As per the daily chart, the technical outlook for XAG/USD is shifting towards neutral to bearish, with signs of bullish exhaustion becoming evident. The Relative Strength Index (RSI) displays a negative slope above its midline, while the Moving Average Convergence Divergence (MACD) exhibits fading green bars. Furthermore, the pair is above the 20,100,200-day SMAs, suggesting that the bulls are firmly in control of the bigger picture.

Resistance levels: $24.90,$25.00, $25.30.
Support levels: $24.15 (20-day SMA), $24.00, $23.80

XAG/USD Daily chart

XAG/USD

Overview
Today last price	24.17
Today Daily Change	-0.59
Today Daily Change %	-2.38
Today daily open	24.76

Trends
Daily SMA20	24.19
Daily SMA50	23.67
Daily SMA100	23.97
Daily SMA200	23.08

Levels
Previous Daily High	24.84
Previous Daily Low	24.2
Previous Weekly High	25.15
Previous Weekly Low	24.04
Previous Monthly High	25.27
Previous Monthly Low	22.52
Daily Fibonacci 38.2%	24.59
Daily Fibonacci 61.8%	24.44
Daily Pivot Point S1	24.35
Daily Pivot Point S2	23.96
Daily Pivot Point S3	23.71
Daily Pivot Point R1	25
Daily Pivot Point R2	25.24
Daily Pivot Point R3	25.64

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

GBP/USD dips below 1.3350 with bullish momentum losing steam

The British Pound ticks lower against the US Dollar Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

EUR/USD clings to daily gains, still below 1.1450

EUR/USD manages to shrug off the initial bearish tone and advances toward the 1.1440-1.1450 band on Monday, up modestly for the day. Meanwhile, the pair’s mild gains comes on the back of the lack of clear direction in the Greenback in quite an apathetic start to the week.

Gold remains offered below $4,200

Gold comes under fresh downside pressure on Monday, reversing three daily upticks in a row and meeting some initial resistance around the $4,200 mark per troy ounce. Safe-haven demand has shifted toward the US Dollar as renewed tensions surrounding the Strait of Hormuz weigh on market sentiment, limiting the precious metal's upside.

Crypto Today: Bitcoin, Ethereum, XRP pull back amid persistent ETF outflows

The cryptocurrency market is experiencing widespread weakness on Monday, with Bitcoin (BTC) sliding under the $63,000 mark amid ongoing risk aversion.

The US Dollar just beat the Swiss Franc at its own safe-haven game

As the king among safe havens, the Swiss Franc is supposed to benefit from geopolitical shocks such as the Iran war. This time, it didn’t. The Swissie is nearly 6% below January’s peak against the USD after a sharp decline that came along with the war in Iran and the closure of the Strait of Hormuz.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.