Silver Price Forecast: XAG/USD stabilizes above $22 on subdued USD Index, US Retail Sales eyed

Silver price seems steady above $22 while US Dollar corrects.
Fed Goolsbee said one-time persistent inflation is insufficient to temper long-term downtrend.
The US Retail Sales data will guide the Silver price.

Sagar Dua FXStreet

Silver price (XAG/USD) manages to shift its auction above the crucial resistance of $22 in the early European session on Thursday as investors digest that rate cuts by the won’t be announced Federal Reserve (Fed) atleast before June. The expectations of a rate cut by the Fed in the May monetary policy meeting have cooled down significantly on the persistent inflation outlook.

S&P500 futures has generated nominal gains in the late Asian session, portraying a marginal improvement in the risk appetite of the market participants. The US Dollar Index (DXY) has corrected gradually to 104.70 from three-month near 105.00. 10-year US Treasury yields have dropped to 4.24%.

On Wednesday, Chicago Fed Bank President Austan Goolsbee said one bad inflation data could not impact the broader trend, which is that price pressures are coming down to the 2% target. When asked about the timing of rate cuts, Goolsbee said the central doesn’t need to wait to reduce inflation to the 2% target to begin reducing the benchmark rates.

In today’s session, investors will focus on the United States Retail Sales data for January, which will be published at 13:30 GMT. The monthly Retail Sales are anticipated to have contracted by 0.1% after expanding 0.6% in December.

Silver technical analysis

Silver price trades in a Descending Triangle Chart pattern on a daily scale, which indicates a volatility contraction but with a negative bias. The 50-day Exponential Moving Average (EMA) near $23 continues to act as a barricade for the Silver price bulls.

The 14-period Relative Strength Index (RSI) consistently discovers support near 40.00. A slippage below the same would trigger a downside momentum.

Silver daily chart

XAG/USD

Overview
Today last price	22.46
Today Daily Change	0.12
Today Daily Change %	0.54
Today daily open	22.34

Trends
Daily SMA20	22.63
Daily SMA50	23.16
Daily SMA100	23.1
Daily SMA200	23.32

Levels
Previous Daily High	22.46
Previous Daily Low	21.93
Previous Weekly High	22.75
Previous Weekly Low	22.14
Previous Monthly High	24.09
Previous Monthly Low	21.93
Daily Fibonacci 38.2%	22.26
Daily Fibonacci 61.8%	22.13
Daily Pivot Point S1	22.03
Daily Pivot Point S2	21.72
Daily Pivot Point S3	21.51
Daily Pivot Point R1	22.56
Daily Pivot Point R2	22.77
Daily Pivot Point R3	23.08

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.

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