• XAG/USD threatens to trade above the $24.00 threshold.
  • Falling US T-bond yields underpin the US Dollar, which is weaker across the board.
  • September’s FOMC minutes reinforce the beginning of a bond taper process, which could be announced by the November meeting.

Silver (XAG/USD) is advancing during the New York session, up more than one a half percent, trading at $23.46 at the time of writing. The white metal is trading at fresh monthly highs, courtesy of falling US Treasury Bond Yields, with the 10-year benchmark note rate slumping three and a half basis points, sitting at 1.514%, short of breaking the 1.50% threshold.

At the same time, the US Dollar Index, which follows the buck’s performance versus six peers, is down 0.03%, at 93.99, despite positive US macroeconomic data across the docket.

On Wednesday, September’s Federal Reserve minutes showed that the committee agreed that a gradual tapering process that concluded around the middle of next year would likely be appropriate due to the ongoing economic recovery. Furthermore, most members agreed that the bond taper process could commence by mid-November or mid-December.

XAG/USD Price Forecast: Technical outlook

Daily chart

Silver is trading above the 50-day moving average (DMA), which lies at $23.29, above the September 13 low at $23.37, which was previous support that turned resistance. Furthermore, momentum indicators like the Relative Strenght Index (RSI) at 58, aiming higher, indicate an upside bias. 

For silver buyers to resume the upward trend, they will need a daily close above the latter to confirm the range’s break, opening the door for further upside. In that outcome, the first resistance would be $24.00. A breach above that level could send XAG/USD rallying towards the September 3 high at $24.86, immediately followed by $25.00.

KEY ADDITIONAL LEVELS TO WATCH

XAG/USD

Overview
Today last price 23.48
Today Daily Change 0.38
Today Daily Change % 1.65
Today daily open 23.1
 
Trends
Daily SMA20 22.52
Daily SMA50 23.33
Daily SMA100 24.84
Daily SMA200 25.57
 
Levels
Previous Daily High 23.25
Previous Daily Low 22.47
Previous Weekly High 23.19
Previous Weekly Low 22.21
Previous Monthly High 24.87
Previous Monthly Low 21.42
Daily Fibonacci 38.2% 22.95
Daily Fibonacci 61.8% 22.76
Daily Pivot Point S1 22.63
Daily Pivot Point S2 22.16
Daily Pivot Point S3 21.85
Daily Pivot Point R1 23.41
Daily Pivot Point R2 23.72
Daily Pivot Point R3 24.19

 

 

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