Silver Price Analysis: XAGUSD bears approach previous resistance line near $21.20
- Silver price remains pressured around intraday low, prints three-day downtrend.
- 200-DMA break, easing bullish bias of MACD keeps sellers hopeful.
- XAGUSD bulls have a bumpy road ahead unless crossing June’s peak.
Silver price (XAGUSD) takes offers to refresh intraday low near $21.35 during the three-day downtrend amid early Thursday.
In doing so, the bright metal justifies the previous day’s downside break of the 200-DMA, as well as the receding bullish bias of the Moving Average Convergence and Divergence (MACD) indicator.
With this, the XAGUSD bears are all set to retest the resistance-turned-support line stretched from early August, around $21.20. Also increasing the importance of the stated support is the previous monthly high.
Should the commodity prices remain bearish past $21.20, the $21.00 round figure and August month’s high near $21.85 will be on the silver bear’s radar.
It should be noted that the 61.8% Fibonacci retracement level of the metal’s downside between June and September, around $20.60, could act as the last defense of the XAGUSD bears before directing them to the $20.00 key support comprising 50% Fibonacci retracement level.
Meanwhile, recovery moves remain elusive unless the quote stays below the 200-DMA level of $21.45.
Even so, the $22.00 threshold and the monthly high near $22.25 could challenge the silver buyers before highlighting June’s monthly top surrounding $22.50.
Silver price: Daily chart
Trend: Further downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
