Silver Price Analysis: XAGUSD climbs above $19.50 amidst a buoyant US Dollar
- Silver price trims some of Wednesday's losses, despite high US Treasury yields.
- The XAGUSD daily chart depicts the precious metal as neutral-to-downward biased, with key resistance at $20.00.
- Short term, a break above $20.00 will open the door toward $21.00; otherwise, it would challenge $19.00.
Silver price recovered some ground on Thursday, even though the American Dollar is rising more than 0.70%, as shown by the US Dollar Index, underpinned by high US Treasury bond yields after the Federal Reserve raised rates by 75 bps. At the time of writing, the XAGUSD is trading at $19.50, above its opening price by 1.56%, after hitting a daily low of $18.84.
Silver Price Analysis (XAGUSD): Technical outlook
XAGUSD bias remains neutral-to-downward biased, even though it cleared the 50-day Exponential Moving Average (EMA) at $19.10 and is battling the 100-day EMA at $19.46. The Relative Strength Index (RSI) is in bullish territory suggesting the XAGUSD is headed upward, but a clear break above $20.00 is needed to shift the bias to neutral. On the flip side, if the XAGUSD closes below the 100-day EMA, a fall toward the 50-day EMA is on the cards, ahead of a $19.00 test.
The XAGUSD one-hour chart portrays a different picture, with the white metal bias as neutral-to-upwards. Nevertheless, it should be noted that XAGUSD price action shows a wide-trading range, spurred on a Fed day, turning the hourly EMAs almost flat, meaning that the XAGUSD is consolidating. Further confirmation was provided by the RSI being in bullish territory but nearly flat.
XAGUSD key resistance levels lie at $20.07, the November 2 high, followed by the October 7 daily high at $20.82, ahead of $21.00. On the flip side, the XAGUSD first support would be the 50-hour EMA at $19.45, followed by the confluence of the 100 and the 200-hour EMAs at $19.38, followed by the $19.00 figure.
Silver 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.
