• Silver is steady seesawing around $23.75, waiting for a catalyst.
  • Mixed market sentiment, but slightly downbeat, triggered by the Chinese economy’s deceleration.
  • XAG/USD daily and hourly charts support a bearish bias in the white metal.

Earlier in the New York session, XAG/USD reached a high of $23.91 but, as the New York stock market opened, the white metal retreated the move trading at $23.79 down a decent 0.27% at the time of writing.

The market sentiment remains mixed but slightly downbeat. During the Asian session, data showed that the Chinese economy keeps slowing down. China’s Retail Sales edged higher by 2.5% versus 7% forecasted by analysts. It was a huge miss caused by lockdown measures implemented in the country amid a Delta variant outbreak. Additionally, major European stock indices finished with losses in line with Asian markets, weighed by Chinese data, while three out of four US stock indexes post gains between 0.37% and 0.40%. 

Technical outlook

Daily chart

XAG/USD is still trading beneath the bottom-trendline of a bearish flag, keeping the downtrend intact. Moreover, the daily moving averages are above the spot price, putting a lid around $24.00. Nevertheless, silver has been trading within the $23.37-96 range in the last three sessions. A daily break below $23.37 will open the door for further losses, towards 2021 low, around $22.10.  

The Relative Strength Index is at 44.03 heading lower, supporting the downtrend.

1-hour chart

Zooming into the 1-hour chart, XAG/USD is trading between the 100 and the 50-simple moving average (SMA), lying at $23.84 and $23.76, respectively. The longer one, the 200-SMA is up at $24.10, confirming the bearish bias. A break below $23.66 could push the prices towards the September 13 lows around $23.37. A sustained break of that support level will pave the way towards August 20 swing lows around $22.87.

On the flip side, a break above the 100-SMA will push the price towards a key resistance area around $24.00 topped by the 200-SMA at $24.10.

The Relative Strength Index is around 46.94 heading lower, supporting the downward bias.

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drifts down toward 1.17 as mood worsens

EUR/USD is trading closer to 1.17, off the highs. Concerns about Chinese giant Evergrande's troubles return to weigh on sentiment, supporting the safe-haven dollar ahead of the PBOC and Fed meetings on Wednesday. 

EUR/USD News

GBP/USD falls toward 1.3650 on fresh dollar strength

GBP/USD is retreating back toward 1.3650 as the dollar reasserts itself. Fears that the crisis in China's Evergrande could turn into a more significant downturn have resumed. Central bank decisions are awaited.

GBP/USD News

Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Alts rebound while Bitcoin tends to its wounds

Bitcoin price suffered a brutal setback as it dropped from being extremely close to a crucial psychological level to slicing through a stable support floor.

Read more

PBoC September Preview: Will policymakers step in to ease Evergrande fears?

People’s Bank of China (PBoC) will announce monetary policy decisions on September 22. Financial markets remain restless amid ongoing Evergrande crisis. PBoC could lower RRR further to support economy. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures