Silver Price Analysis: XAG/USD picks strength around $23.50 as US Dollar Index drops


  • A decline in the US Dollar Index has shifted traction in favor of Silver price.
  • Investors’ risk appetite has improved amid a rebound in S&P500 futures.
  • The 200-period EMA is overlapping with the white metal prices, which indicates a lackluster performance ahead.

Silver price (XAG/USD) has rebounded firmly after dropping to near $23.50 in the Asian session. The white metal has extended its recovery above the immediate resistance of $23.60 as the US Dollar Index (DXY) is facing heat amid failing to recapture the critical hurdle of 103.00.

It seems that the risk appetite of the market participants is improving again as S&P500 futures have trimmed the majority of their morning losses. Also, the 10-year US Treasury yields have dropped to 3.53%.

On an hourly scale, the Silver price has sensed buying interest after correcting to near the horizontal support plotted from December 29 low at $23.46. Broadly, the 200-period Exponential Moving Average (EMA) at $23.75 is overlapping with the white metal prices, which is indicating a lackluster performance ahead.

Meanwhile, the Relative Strength Index (RSI) (14) is aiming to shift into the 40.00-60.00 range from the bearish range of 20.00-40.00, which indicates an attempt for a bullish reversal.

For an upside move, the Silver price needs to break above Monday’s high at $24.10, which will drive the asset towards January 3 high at $24.55 followed by the psychological resistance at $25.00.

On the contrary, a declining move below January 5 low at $23.12 will drag the Silver price toward December 19 low and December 16 low at $22.84 and $22.56 respectively.

Silver hourly chart

XAG/USD

Overview
Today last price 23.63
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 23.63
 
Trends
Daily SMA20 23.69
Daily SMA50 22.4
Daily SMA100 20.76
Daily SMA200 21.09
 
Levels
Previous Daily High 24.1
Previous Daily Low 23.58
Previous Weekly High 24.55
Previous Weekly Low 23.12
Previous Monthly High 24.3
Previous Monthly Low 22.03
Daily Fibonacci 38.2% 23.78
Daily Fibonacci 61.8% 23.91
Daily Pivot Point S1 23.44
Daily Pivot Point S2 23.25
Daily Pivot Point S3 22.92
Daily Pivot Point R1 23.96
Daily Pivot Point R2 24.29
Daily Pivot Point R3 24.48

 

 

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