Silver Price Analysis: XAG/USD declines following global PMI surveys


  • XAG/USD dropped for a third consecutive day below $24.50, bullish cross between the 20 and 100-day SMA.
  • German and British yields dropped following weak local PMIs, while Americans rose somewhat.
  • All eyes on Fed, ECB and BoJ decisions this week.


At the start of the week, the XAG/USD Silver spot price lost ground as the USD recovery made the grey metal struggle to find demand. The sessions highlights were American and European PMI surveys before the focus shifted to the main central bank monetary policy decisions this week.

German and British Manufacturing and Services PMIs came in lower than expected, while the American indexes came in mixed.  The Manufacturing PMI from the US rose to 49 vs the 46.4 expected and the previous 46.3, while the Services Index dropped to 52.4, lower than the 54 expected and the last figure of  54.5.

As a reaction, The US Dollar index (DXY) is trading with gains above 101.00, with American yields seeing little movement. The 2-year yield rose to 4.85%, while the 5 and 10-year rates stand at 4.12% and 3.85%, with mild increases. For Wednesday’s Federal Reserve (Fed) decision, markets expect a 25 basis point announcement but continue to bet on little odds of another hike past July. In that sense, the monetary policy statement followed by Chair Powell’s presser will be closely watched for clues regarding forward guidance.

Regarding Thursday's European Central Bank (ECB) decision, markets expect a 25 bps hike, while on Friday, investors see the Bank of Japan (BoJ) maintaining its dovish stance.

XAG/USD levels to watch

According to the daily chart, the technical outlook for the XAG/USD is bearish for the short term as indicators took a big hit in the previous sessions. However, traders should eye the 20 and 100-day Simple Moving Average (SMA) movements as they are about to perform a bullish cross at the $23.75 area, which could provide vital support to the grey metal.

Support levels: $24.15, $24.00, $23.75. 
Resistance levels: $24.50, $25.00, $25.30.

 

XAG/USD Daily chart

XAG/USD

Overview
Today last price 24.41
Today Daily Change -0.19
Today Daily Change % -0.77
Today daily open 24.6
 
Trends
Daily SMA20 23.66
Daily SMA50 23.58
Daily SMA100 23.73
Daily SMA200 22.91
 
Levels
Previous Daily High 24.92
Previous Daily Low 24.59
Previous Weekly High 25.27
Previous Weekly Low 24.59
Previous Monthly High 24.53
Previous Monthly Low 22.11
Daily Fibonacci 38.2% 24.72
Daily Fibonacci 61.8% 24.79
Daily Pivot Point S1 24.49
Daily Pivot Point S2 24.38
Daily Pivot Point S3 24.16
Daily Pivot Point R1 24.82
Daily Pivot Point R2 25.03
Daily Pivot Point R3 25.15

 

 

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