- XAG/USD finishes the week on the wrong foot, despite falling US bond yields.
- XAG/USD plummeted in the day as risk-off market mood boosts the greenback.
- Fed’s Waller and Clarida would like a faster bond taper.
- XAG/USD Technical outlook: An inverted head and shoulders target the $28.20-30 range.
As Wall Street closes, silver (XAG/USD) finished the session in the red, down almost 1%, at $24.58 at the time of writing. Friday’s session witnessed a downbeat market sentiment in the equity markets. The S&P 500 and the Dow Jones Industrial printed losses between 0.11% and 0.74%. The outlier was the Nasdaq 100, gaining 0.56%. Safe-haven currencies finished the day in the green in the FX market, while risk-sensitive currencies, like the AUD, the NZD, and the GBP, fell.
In the overnight session, silver remained subdued, trendless trading around the $24.75-93 region. However, some fed speakers spurred demand for the greenback throughout the American session, ultimately affecting the white metal, which plunged to the $24.50 area.
Fed’s Waller and Clarida would like a faster bond taper
On Friday, Fed Governor Christopher Waller indicated that the Federal Reserve may double the pace of its QE to $30 billion per month to end by April of 2022. Waller added that accelerating the rhythm would give the US central bank space for rate hikes as soon as Q2 of 2022.
Later during the day, Fed’s Vice Chairman Richard Clarida said that it “may very well be appropriate” to discuss accelerating the pace of the bond tapering, in line with St. Louis President James Bullard. Further noted that he sees upside risks to inflation and added that the economy is very strong position at that it looks as though Q4 is going to be very good.
The 10-year Treasury yield closed at 1.55% in the bond market, down three and a half basis points.
XAG/USD Price Forecast: Technical outlook
Silver (XAG/USD) portrays that an inverted head-and-shoulders in the daily chart just formed. However, it would need a confirmation above the neckline, though Friday’s price action witnessed a daily close below the neckline. Despite the abovementioned, the non-yielding metal has an upward bias in the near term, with the 50 and 100-day moving averages (DMA’s) residing below the spot price.
Nevertheless, to accelerate the uptrend, silver bulls would need to reclaim the 200-DMA at $25.26. That outcome would open the door for further gains, though XAG/USD bulls would find some hurdles on the way north.
The first resistance would be the August 4 high at $26.00. A sustained breach of the latter would expose July 14 high $26.44, followed by the psychological $27.00.
On the flip side, failure the first support would be the 100-DMA at $24.06
|Today last price||24.59|
|Today Daily Change||-0.23|
|Today Daily Change %||-0.93|
|Today daily open||24.82|
|Previous Daily High||25.16|
|Previous Daily Low||24.68|
|Previous Weekly High||25.39|
|Previous Weekly Low||24.03|
|Previous Monthly High||24.83|
|Previous Monthly Low||22|
|Daily Fibonacci 38.2%||24.87|
|Daily Fibonacci 61.8%||24.98|
|Daily Pivot Point S1||24.61|
|Daily Pivot Point S2||24.41|
|Daily Pivot Point S3||24.14|
|Daily Pivot Point R1||25.09|
|Daily Pivot Point R2||25.36|
|Daily Pivot Point R3||25.56|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.