- Silver edges higher during the Asian session, though the downside remains cushioned.
- Traders now seem reluctant to place aggressive bets ahead of the key FOMC decision.
- The mixed technical setup further warrants some caution before placing directional bets.
Silver struggles to capitalize on the previous day's goodish rebound from the $24.30-$24.25 area, or a one-and-half-week low and trades with a mild negative bias through the Asian session on Wednesday. The white metal, however, lacks follow-through selling and currently trades around the $24.65 region, down less than 0.15% for the day.
From a technical perspective, the recent break and acceptance below the 50-period Simple Moving Average (SMA) favours bearish traders and suggests that the path of least resistance for the XAG/USD is to the downside. That said, oscillators on hourly/daily charts are holding in the positive territory and warrant some caution before positioning for any further depreciating move. Traders also seem reluctant from placing aggressive directional bets and prefer to wait for the highly-anticipated FOMC monetary policy decision, due later this Wednesday.
In the meanwhile, the 50-period SMA on the 4-hour chart, currently pegged around the $24.85 region, is likely to act as an immediate hurdle ahead of the $25.00 psychological mark. Any subsequent move up, however, is more likely to remain capped near last week's swing high, around the $25.25 region. The latter should act as a pivotal point, above which the XAG/USD could surpass the $25.50-$25.55 intermediate hurdle and climb further towards reclaiming the $26.00 round figure en route to the YTD peak, around the $26.10-$26.15 area touched in May,
On the flip side, the weekly low, around the $24.30 area, is likely to protect the immediate downside, below which the XAG/USD could slide to the $24.00 mark. Some follow-through selling should pave the way for deeper losses towards the $23.65-$23.60 support before the XAG/USD drops to the $23.20-$23.15 region. Some follow-through selling below the $23.00 mark, nearing the very important 200-day SMA, will shift the bias in favour of bearish traders and make the XAG/USD vulnerable to challenge the multi-month low, around the $22.15-$22.10 area.
Silver 4-hour chart
-638259389204801334.png)
Key levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady above 1.0550 on modest USD weakness
EUR/USD struggles to gather recovery momentum but clings to modest daily gains above 1.0550 in the second half of the day on Monday. Although the US Dollar corrects lower following the previous week's rally, the cautious market mood makes it hard for the pair to push higher.
GBP/USD stabilizes above 1.2600 following previous week's drop
GBP/USD defends minor bids above 1.2600 in the American session on Monday, while the negative shift seen in risk sentiment caps the pair's upside. The Bank of England Monetary Policy Hearings and UK inflation data this week could influence Pound Sterling's valuation.
Gold benefits from escalating geopolitical tensions, rises above $2,600
After suffering large losses in the previous week, Gold gathers recovery momentum and trades in positive territory above $2,600 on Monday. In the absence of high-tier data releases, escalating geopolitical tensions help XAU/USD hold its ground.
Bonk holds near record-high as traders cheer hefty token burn
Bonk (BONK) price extends its gains on Monday after surging more than 100% last week and reaching a new all-time high on Sunday. This rally was fueled by the announcement on Friday that BONK would burn 1 trillion tokens by Christmas.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.