Silver Price Forecast: XAG/USD corrects to $24 despite hopes of Fed’s soft landing remains abated

Silver price corrects further as the US Dollar remains firm due to stable job growth.
Fed Mester that demand and supply in the labor market is coming into a better balance.
Silver price demonstrates a Broadening Triangle chart formation.

Sagar Dua FXStreet

Silver price (XAG/USD) extends its correction to near the crucial support of $24.00 even though investors hope that the Federal Reserve (Fed) is done with hiking interest rates. The white metal remained offered from Thursday but the broader trend is still positive as the tight United States labor market starts cooling down.

S&P500 futures remain lackluster as US markets are closed on account of Labor Day. Due to the extended weekend, weak volume is expected in the FX domain too. Also, the market mood is quiet due to an extended weekend.

The US Dollar Index (DXY) looks set to extend recovery above the immediate resistance of 104.20 as job growth remains solid in August.

Cleveland Fed Bank President Loretta Mester said on Friday that demand and supply in the labor market is coming into a better balance but the job market is still strong. She further added that while job growth has slowed and job openings are down, the Unemployment Rate is low.

Also, US Manufacturing PMI for August increased to 47.6 from 46.4 in July but remained below the 50.0 mark, which itself shows a contraction in activities. After factory activities, investors shift focus to the Services PMI for August, which will be published on Wednesday.

Silver technical analysis

Silver price demonstrates a Broadening Triangle chart formation on a two-hour scale. The downside is supported near the horizontal resistance plotted from August 25 low around $23.92. A declining 20-period Exponential Moving Average (EMA) indicates that the mid-term trend is bearish. The Relative Strength Index (RSI) (14) shifts into the bearish range of 20.00-40.00, which indicates that a bearish impulse is already active.

Silver two-hour chart

XAG/USD

Overview
Today last price	24.01
Today Daily Change	-0.17
Today Daily Change %	-0.70
Today daily open	24.18

Trends
Daily SMA20	23.43
Daily SMA50	23.68
Daily SMA100	23.93
Daily SMA200	23.43

Levels
Previous Daily High	24.82
Previous Daily Low	24.16
Previous Weekly High	25.02
Previous Weekly Low	24.05
Previous Monthly High	25.02
Previous Monthly Low	22.23
Daily Fibonacci 38.2%	24.41
Daily Fibonacci 61.8%	24.57
Daily Pivot Point S1	23.95
Daily Pivot Point S2	23.72
Daily Pivot Point S3	23.28
Daily Pivot Point R1	24.62
Daily Pivot Point R2	25.06
Daily Pivot Point R3	25.29

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.