Silver Price Analysis: XAGUSD unable to hold above $19.00 mark
- Silver spikes on Wednesday to $19.09, lacks follow-through buying.
- A steady and vulnerable XAUUSD not helping XAGUSD.
- Consolidation above $19.00 could trigger more gains, key resistance at $19.50.
Silver is marginally higher on Wednesday. It climbed to $19.09 but only to gave up all gains a few minutes later by pulling back to $18.80 during the American session.
The US dollar has stabilized, not helping metals. Also gold remains steady, and still looking vulnerable, near $1700/oz. A break under that psychological are could drag silver to the downside.
From a technical perspective, the XAGUSD remains unable to make a clear break of the $19.00 mark. The spike was taken as an opportunity to sell it. If price rises and holds above $19.00 it could strengthen for a test of the critical resistance area of $19.40-$19.50.
Technical indicators offer no clear signs. The RSI and Momentum are flat. Price is holding above the 20 Simple Moving Average in the four-hour chart and also above a short-term downtrend line. A slide under $18.75 should change the intraday bias to bearish. If XAGUSD drops further, the $18.55 zone emerges as the next support, followed by $18.45, the last defence to the year-to-day low near $18.15.
Silver 4-hour chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
