- Silver attracts some buying and recovers a part of the overnight slide to a one-month low.
- The recent breakdown below important technical support levels favours bearish traders.
- Any subsequent recovery might now be seen as a selling opportunity and remain capped.
Silver gains some positive traction on Wednesday and for now, seems to have snapped a two-day losing streak to a one-month low, around the $22.65 region touched the previous day. The white metal maintains its bid tone around the $22.80-$22.85 zone through the early part of the European session, though the near-term technical setup suggests that the path of least resistance is to the downside.
Against the backdrop of this week's breakdown below an ascending trend-line extending from the June swing low, a subsequent slide and acceptance below the very important 200-day Simple Moving Average (SMA) was seen as a fresh trigger for bears. Moreover, oscillators on the daily chart are holding in the negative territory and are still far from being in the oversold zone. This, in turn, validates the near-term bearish outlook for the XAG/USD and supports prospects for the emergence of fresh selling at higher levels.
Hence, any further recovery beyond the $23.00 round-figure mark is likely to remain capped near the 200-day SMA breakpoint, currently pegged around the $23.25 region. The latter should act as a pivotal point, which if cleared decisively might trigger a short-covering move and lift the XAG/USD towards the $23.60-$23.65 horizontal barrier. The momentum could get extended further towards reclaiming the $24.00 mark.
On the flip side, the overnight swing low, around the $22.65 region might protect the immediate downside. The XAG/USD, however, still seems vulnerable to slide back towards retesting the multi-month low, around the $22.15-$22.10 area touched in June. Some follow-through selling below the $22.00 mark should pave the way for an extension of the recent downfall witnessed over the past three weeks or so, from the $25.25 area.
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 sits at yearly lows near 1.0550 ahead of EU GDP, US PPI data
EUR/USD is trading near 1.0550 in the European session on Thursday, sitting at the lowest level in a year. The Trump trades-driven relentless US Dollar buying and German political instability weigh on the pair. Traders await EU GDP data and US PPI report ahead of Fed Chair Powell's speech.
GBP/USD holds losses below 1.2700 on sustained US Dollar strength
GBP/USD is holding losses near multi-month lows below 1.2700 in European trading on Thursday. The pair remains vulnerable amid a broadly firmer US Dollar and softer risk tone even as BoE policymakers stick to a cautious stance on policy. Speeches from Powell and Bailey are eyed.
Gold price hits fresh two-month low as the post-election USD rally remains uninterrupted
Gold price drifts lower for the fifth consecutive day and drops to its lowest level since September 19, around the $2,554-2,553 region heading into the European session on Thursday. The commodity continues to be weighed down by an extension of the US Dollar's post-election rally to a fresh year-to-date.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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.