- 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.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 after US data
EUR/USD stays in a consolidation phase below 1.0700 in the early American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold trades on the back foot, manages to hold above $2,300
Gold struggles to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to reverse its direction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.