Forex News

14:06:15 27-01-2023

Silver Price Analysis: XAG/USD flirts with ascending channel/100-hour SMA confluence

  • Silver comes under some renewed selling pressure on the last day of the week.
  • The technical setup supports prospects for a further intraday depreciating move.
  • A sustained move beyond the $24.50-$24.55 area will negate the negative bias.

Silver extends the previous day's retracement slide from the $24.30 area, or over a one-week high, and remains under some selling pressure on Friday. The white metal maintains its offered tone through the mid-European session and is currently placed near the daily low, around the $23.70 region.

From a technical perspective, the XAG/USD, so far, has managed to defend the lower end of a four-day-old ascending trend channel. The said support coincides with the 100-hour SMA and should now act as a pivotal point for short-term traders. Given that oscillators on hourly charts have been gaining some negative traction, a convincing break below will set the stage for further losses.

The XAG/USD might then accelerate the fall towards intermediate support near the $23.50-$23.45 area before eventually dropping to test sub-$23.00 levels. This is followed by the weekly low, around the $22.75 region touched on Monday. Some follow-through selling has the potential to drag the commodity further towards testing the next relevant support near the $22.00 round figure.

On the flip side, the daily swing high, around the $24.00 mark, might now act as an immediate hurdle. Any further move up might confront resistance near the $24.25-$24.30 region ahead of the $24.50-$24.55 supply zone, or a multi-month high touched on January 16. A sustained strength beyond should allow the XAU/USD to reclaim the $25.00 psychological mark for the first time since April 2022.

Silver 1-hour chart


Key levels to watch


News provided by the portal FXStreet