- Silver’s bounced off daily lows nearby the $23.00 figure and is climbing sharply, gaining 1.33%.
- US Dollar continued to weaken, but US Treasury bond yields put a lid on XAG/USD’s rally.
- XAG/USD is exposed to selling pressure below $23.60; otherwise, it could re-test the YTD high.
Silver price is trimming some of Wednesday’s losses and probes the 20-day Exponential Moving Average (EMA) around $23.65 on a trading session characterized by a weaker US Dollar (USD) and a downbeat market mood spurred by recession fears after dismal US data. Therefore, the XAG/USD is trading at $23.74 after hitting a daily low of $23.17.
Silver Price Analysis: XAG/USD Technical Outlook
Silver’s daily chart suggests the white metal could peak around the $24.50s area. The non-yielding metal hasn’t been able to crack the latter, keeping Silver bears hopeful. As XAG/USD has reached higher peaks, the Relative Strength Index (RSI) did not, opening the door for a negative divergence. In addition, the Rate of Change (RoC) in the last two days suggests bearish momentum increased. Hence, a pullback in XAG/USD is on the cards.
For that scenario to play out, the XAG/USD needs to drop below $23.17, so the $23.00 psychological level could be exposed. A breach of the latter will open the door to test the 50-day EMA at $22.87, which, once cleared, will send XAG/USD dropping toward the December 16 low of $22.56.
As an alternate scenario, if Silver reclaims and achieves a daily close above the 20-day EMA, that could pave the way for a re-test of the YTD high of $24.54. Firstly, reclaiming the former would expose the $24.00 handle. The break above will reveal the YTD high at $24.54.
Silver Key Technical Levels