Silver Price Analysis: XAGUSD struggles for a firm direction, stuck in a range around $21.00
- Silver reverses an intraday dip to sub-$21.00 levels, though lacks follow-through buying.
- Repeated failures to find acceptance above the 200 DMA warrant some caution for bulls.
- A convincing break below the weekly low is needed to negate any near-term positive bias.
Silver attracts some dip-buying on Thursday and stalls the previous day's retracement slide from the $21.60 area or the lowest level since June 22. The intraday bounce from sub-$21.00 levels, however, lacks follow-through as traders keenly await the release of the crucial US consumer inflation figures.
From a technical perspective, the XAGUSD, so far, has struggled to make it through the very important 200-day SMA resistance. Meanwhile, oscillators on the daily chart are holding comfortably in the bullish territory and support prospects for additional gains. That said, it will still be prudent to wait for a sustained move beyond the $21.60 area before confirming a fresh bullish breakout.
The XAGUSD might then accelerate the momentum and aim to reclaim the $22.00 round-figure mark. The next relevant hurdle is pegged near the $22.30-$22.35 region, which is closely followed by the June swing high, around mid-$22.00s. The latter should act as a key pivotal point, which if cleared decisively will set the stage for an extension of the recent rally from the vicinity of the $18.00 mark.
On the flip side, any meaningful pullback below the $21.00 mark could be seen as a buying opportunity and remain limited near the weekly low, around the $20.40 region. Failure to defend the said support might negate any near-term positive bias and drag the XAGUSD to the $20.00 psychological mark. The downward trajectory could get extended towards the $19.65 horizontal resistance breakpoint.
Silver daily chart
Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
