- Silver struggles to capitalize on a two-day-old strong uptrend and edges lower on Friday.
- The technical setup favours bullish traders and supports prospects for additional gains.
- Corrective slide back towards the 200-day SMA could get bought into and remain limited.
Silver (XAG/USD) comes under some selling pressure on Friday, snapping a two-day winning streak to over a one-week high touched the previous day and stalling this week's strong recovery from mid-$22.00s or a near one-month low. The white metal remains on the defensive through the early European session and currently trades just above the $24.00 round figure, down nearly 0.40% for the day.
From a technical perspective, the XAG/USD earlier this week showed some resilience below and defend an upward-sloping sloping line extending from a multi-month low touched in October. The subsequent surge beyond the very important 200-day Simple Moving Average (SMA) favours bullish traders and supports prospects for a further appreciating move. Moreover, oscillators on the daily chart have again started gaining positive traction and validate the near-term constructive setup.
Hence, any subsequent decline might still be seen as a buying opportunity and remain limited near the 200-day SMA, currently pegged near the $23.60 region. Some follow-through selling, however, might turn the XAG/USD vulnerable to accelerate the slide towards the $23.00 mark en route to the aforementioned ascending trend-line support, around the $22.85-$22.80 region. A convincing break below the latter will negate the positive outlook and shift the bias in favour of bearish traders.
On the flip side, bulls might wait for a move beyond the $24.20 area before placing fresh bets and positioning for a move towards reclaiming the $25.00 psychological mark. The upward trajectory could get extended further towards the $25.25 intermediate hurdle en route to the $25.45-$25.50 region and the $26.00 neighbourhood, or the highest level since May 5 touched earlier this month.
Silver daily chart
Technical 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 higher ground above 1.0800 ahead of US payrolls
EUR/USD is holding higher ground above 1.0800 in the European session on Friday. The pair extends its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
GBP/USD rises toward 1.2800 after a landslide Labour victory
GBP/USD extends gains toward 1.2800 in the European session on Friday. The Pound Sterling is underpinned by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
Gold continues positive run as investors foresee lower interest rates
Gold rises on Friday, continuing its run of positive days as investors become increasingly optimistic the Fed will lower interest rates sooner than previously thought, and the US Dollar softens, adding a lift to Gold which is predominantly bought and sold in Dollars.
Bitcoin falls below $56,000 level
BTC breached the weekly support level of $58,375 on Thursday; as of Friday, it is trading 2.8% lower at $55,314. ETH and XRP have dropped below crucial support thresholds.
Nonfarm Payrolls forecast to grow by 190K in June as Fed ponders rate-cut timing
With US Federal Reserve Chairman Jerome Powell’s Sintra appearance out of the way, all eyes now remain on top-tier Nonfarm Payrolls data for June, due on Friday at 12:30 GMT.