- Silver Price fades bounces off five-month-old support line ahead of US Retail Sales for July.
- Bearish MACD signals, sustained trading below $23.30 resistance confluence favor XAG/USD sellers.
- Convergence of 50% Fibonacci retracement, rising trend line from September 2022 appears a tough nut to crack for Silver bears.
Silver Price (XAG/USD) remains pressured at the lowest level in 11 weeks, bouncing off ascending support line from mid-March.
In doing so, the XAG/USD justifies the bearish MACD signals and a clear downside break of the $23.30 resistance confluence comprising the 200-DMA and previous support line stretched from March 10.
It’s worth noting, however, that the oversold RSI (14) challenges the XAG/USD bears, which in turn highlights the rising support line from March 15, around $22.45.
Following that, an ascending support line from September 2022 and a 50% Fibonacci retracement of September 2022 to May 2023 upside, near $21.85-90, will be a crucial challenge for the Silver bears before tightening the grip.
Meanwhile, the Silver Price recovery past $23.30 becomes necessary to convince the Silver buyers.
Even so, the tops marked in June and July of 2023, respectively near $24.50 and $25.30, can prod the Silver buyers before giving them control.
In that case, the yearly high marked in May at around $26.15 will be in the spotlight.
Fundamentally, China’s Industrial Production and Retail Sales for July will be closely observed amid fears of losing economic momentum in the world’s second-biggest economy. Later in the day, the US Retail Sales for the said month will be more important as market players keep betting on the Fed’s policy pivot in September, which in turn may weigh on the US Dollar and favor the XAG/USD rebound should the scheduled data weakens.
Silver Price: Daily chart
Trend: Limited downside expected
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