XAGUSD @ 5.25 – Support/Resistance analysis: Silver Price Analysis: dives towards the 50-DMA, forming a bearish-engulfing candle pattern

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XAGUSD @ 5.25 – Support/Resistance analysis: Silver Price Analysis: dives towards the 50-DMA, forming a bearish-engulfing candle pattern

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• Silver price is upward biased from a monthly chart perspective.
• In the weekly chart, XAG/USD remains below its 200-week EMA, downward biased.
• XAG/USD daily chart illustrates silver as neutral-to-downwards, though a bearish-engulfing candle pattern suggests a leg-down is on the cards.

The pair currently trades last at 5.25.

The previous day high was 20.84 while the previous day low was 20.24. The daily 38.2% Fib levels comes at 20.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.47, expected to provide resistance.

Silver price edges lower during Monday’s North American session, down by 2.40% courtesy of US dollar strength, despite falling US Treasury bond yields, ahead of the release of the last FOMC monetary policy minutes. At the time of writing, the XAG/USD formed a bearish-engulfing candle pattern, trading at $20.23.

The white metal outlook looks more positive than negative from a monthly chart perspective. July’s price action formed a dragonfly-doji in a crowded area with the 50, 100, and 200-monthly MAs lying around the $18.48-$20.17 region, which could pave the way for further gains. On the topside, the 20-month EMA at $23.81 might cap further XAG/USD gains.

XAG/USD Monthly chart

In the meantime, the XAG/USD weekly chart portrays the non-yielding metal struggling at the 200-week MA, at $20.60. Nevertheless, unless sellers push silver below $19.80, buyers could remain hopeful of higher prices, though they would face a wall of resistance at around $21.48, the 20-week EMA. Once cleared, it would pave the way towards the 50-week EMA at $22.73, ahead of the 100-week at $24.11.

XAG/USD Weekly chart

The XAG/USD daily chart portrays silver as neutral-to-downwards biased. As previously mentioned, a bearish-engulfing candle pattern surfaced. Still, the 50-day EMA at $20.18 is a difficult support level to overcome for sellers, but the Relative Strength Index (RSI) aiming lower, towards the 50-midline, might open the door for further losses.

If XAG/USD sellers achieve a daily close below the above-mentioned, the XAG/USD next support would be the $20.00 figure, which, once cleared, could test the 20-day EMA at $19.73. On the flip side, if XAG/USD buyers hold the fort above the former, then the XAG/USD first resistance would be the $21.00 figure. Break below will expose crucial resistance levels, like the 50-day EMA at $21.68, followed by the 200-day EMA at $22.68.

XAG/USD Daily chart

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.23 at the time of writing. Pair opened at 20.84 and is trading with a change of -2.93 % .

The pair is trading above its 20 Daily moving average @ 19.67, below its 50 Daily moving average @ 20.24 , below its 100 Daily moving average @ 21.75 and below its 200 Daily moving average @ 22.72

The previous day high was 20.84 while the previous day low was 20.24. The daily 38.2% Fib levels comes at 20.61, expected to provide resistance. Similarly, the daily 61.8% fib level is at 20.47, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 20.44, 20.04, 19.84
• Pivot resistance is noted at 21.04, 21.24, 21.64

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