Silver Price Analysis: XAG/USD falls but is subdued around $19.10, ahead of FOMC’s decision
|- Silver price tumbles ahead of the Fed November meeting on a buoyant US Dollar.
- From a daily chart perspective, XAG/USD remains neutral-to-downward biased.
- Short term, the XAG/USD is subdued around $19.10s.
XAG/USD slides from around the daily high at $19.25 towards the 50-day Exponential Moving Average (EMA) at $19.09 amidst broad US Dollar strength, exacerbated by US Treasury yields rising on an almost certain 75 bps Federal Reserve hike at November’s meeting. At the time of writing, XAG/USD is trading at $19.13, below its opening price by 0.40%.
XAG/USD Price Forecast: Technical outlook
From a daily chart perspective, XAG/USD remains neutral-to-downward biased, though it was neutral when the white metal reached a monthly high at $21.23. However, erased its gains, and at the time of typing, it meanders around $19.10s. Worth noting that on its way south, the white metal tumbled below the 100 and the 20-day EMAs, so as mentioned above, the bias remains unchanged.
The Relative Strength Index (RSI) crossed below the 50-midline, meaning sellers are gathering momentum. Nevertheless, XAG/USD needs to achieve a daily close below $19.00, to open the door for further losses.
Short term, the XAG/USD is range-bound. However, traders should be aware that the Exponential Moving Averages (EMAs) remain below the spot price except for the 50 and 100-EMA, hovering around the daily pivot point at $19.25 and $19.37, respectively. Also, the Relative Strength Index (RSI) below the 50-midline is trendless, meaning that silver is consolidated.
Key resistance levels lie at the 50-EMA at $19.25, followed by the daily pivot level at $19.28, ahead of the 100-EMA at $19.37. On the flip side, the XAG/USD first support would be the confluence of the 20 and 200-EMA at $19.12, followed by the S1 daily pivot at $18.93, followed by the S2 pivot level at $18.65.
Key Technical Levels
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.