- Silver attracts buyers on Thursday and snaps a three-day losing streak to the weekly low.
- The technical setup supports prospects for the emergence of fresh selling at higher levels.
- Bears might wait for a break below $22.70 or the monthly low before placing fresh bets.
Silver (XAG/USD) gains some positive traction on Thursday and for now, seems to have snapped a three-day losing streak to the weekly low, around the $22.80-$22.75 region touched the previous day. The white metal sticks to its intraday gains through the first half of the European session and currently trades around the $23.00 round figure, up 0.60% for the day.
From a technical perspective, any subsequent move up is likely to confront resistance near the 100-day Simple Moving Average (SMA), currently pegged near the $23.30 region. This is followed by a multi-month-old ascending trend-line support breakpoint, around the $23.60 region, which now coincides with the 200-day SMA and should act as a key pivotal point. A sustained strength beyond the latter might trigger a short-covering rally and lift the XAG/USD to the $23.80 horizontal resistance en route to the $24.00 round-figure mark.
Some follow-through buying will suggest that the recent corrective downfall since late December has run its course and shift the bias in favour of bullish traders. The XAG/USD might then accelerate the positive momentum towards the $24.60 area, or the December 22 high, before aiming back towards reclaiming the $25.00 psychological mark. That said, oscillators on the daily chart are holding deep in the negative territory and support prospects for the emergence of fresh selling at higher levels. This, in turn, favours bearish traders and suggests that the path of least resistance for the white metal remains to the downside.
That said, it will still be prudent to wait for weakness below a multi-week low, around the $22.70 region touched last Thursday before positioning for the resumption of the recent depreciating move witnessed over the past two weeks or so. The XAG/USD might then turn vulnerable to weaken further below the December monthly swing low, around the mid-$22.00s and test the next relevant support near the $22.25 region before eventually dropping further towards the $22.00 round-figure mark.
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.