Silver reverses modest intraday losses to the $23.15 area and climbs back closer to a nearly two-week high touched this Tuesday. The white metal now trades around the $23.25 region during the early European session, nearly unchanged for the day.
From a technical perspective, oscillators on the daily chart – though have been recovering from lower levels – are still holding in the negative territory and favour bearish traders. That said, last week's solid bounce from the $22.30 support area – representing an ascending trend line extending from the June monthly low – and the subsequent strength warrants caution before positioning for deeper losses ahead of the pivotal FOMC monetary policy decision on Wednesday.
In the meantime, any meaningful decline is likely to find some support near the $23.00 round figure ahead of the $22.80 area and the $23.30 region or a nearly one-month low touched last Thursday. A convincing break below the latter will be seen as a fresh trigger for bearish traders and make the XAG/USD vulnerable to accelerate the fall towards the next relevant support near the $21.25 zone. The downward trajectory could get extended further towards the $21.00 mark.
On the flip side, momentum beyond the $23.30 area, or the daily peak, could face stiff resistance and remain capped near a technically significant 200-day Simple Moving Average (SMA), currently pegged around the $23.45 region. A sustained breakout, however, could shift the bias in favour of bullish traders. This, in turn, should allow the XAG/USD to climb further beyond the 100-day SMA barrier near the $23.80 region and aim to reclaim the $24.00 round-figure mark.
The next relevant hurdle is pegged near the $24.30-$24.35 region, above which the XAG/USD is likely to conquer the $25.00 psychological mark. The latter coincides with the August monthly swing high and is closely followed by the July peak, around the $25.25 region.
© 2011-2023 TeleTrade-DJ International Consulting Ltd
This website is operated by TeleTrade-DJ International Consulting Ltd which is registered with the Department of Registrar of Companies and Intellectual Property of the Companies of the Republic of Cyprus as a private limited company with registration number HE272810 and is authorized by the Cyprus Securities and Exchange Commission ("CySEC") to act as a licensed Cyprus Investment Firm ("CIF") with license number 158/11. TeleTrade-DJ International Consulting Ltd operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.58% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.