Silver Price Analysis: XAG/USD capped below a key resistance area at $19.60/70
- Silver prices tick down after failing to breach the $19.60/70 resistance area.
- The 100-day SMA and 50% Fibonacci retracement are putting a lid on XAG/USD's recovery.
- The near-term bias remains positive, with downside attempts limited at $19.30.
Silver prices have ticked lower on Thursday, as the recovery from Tuesday’s low at $18.80, failed about 100 pips higher, capped by an important resistance hurdle.
Silver bulls, capped at the 100-day SMA
The XAG/USD seems unable to break above the resistance area at $19.60/70, where the 100-day SMA and the 50% Fibonacci retracement of the October 4 to 14 decline are posing a significant resistance to the white metal's recovery.
The pair seems to have lost momentum on Thursday, weighed by a somewhat firmer US dollar, although it maintains the near-term positive bias, with downside attempts limited above the 38.2% Fibonacci retracement, at $19.30 and the 50-day SMA, at $19.10.
On the upside, a confirmation above $19.70 would face another key resistance area in the vicinity of the $20.00 psychological level (September 9, 12, and 21 highs and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.
A bearish reaction below the 50-day SMA, at $19.10 would negate the positive trend and set the pair aiming towards, $18.80 (Oct 25 low) and October 14 low at $18.10.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
