#XAGUSD @ 18.374 Silver price plummets more than 2.50% due to overall US dollar strength. (Pivot Orderbook analysis)

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• Silver price plummets more than 2.50% due to overall US dollar strength.
• US Treasury bond yields rise, a headwind for the white metal.
• Silver Price Analysis: Once it falls below $18.00, a test of the YTD lows at $17.56 is on the cards.

The pair currently trades last at 18.374.

The previous day high was 19.71 while the previous day low was 18.77. The daily 38.2% Fib levels comes at 19.13, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.35, expected to provide resistance.

Silver price slides to fresh three-week lows below $19.00, as US Treasury bond yields are rising sharply, with the US 10-year T-note rate hitting 3.90%, for the first time since April 2010, when the benchmark note fell from the 4% threshold. At the time of writing, XAG/USD exchanges hands at $18.35, below its opening price by 2.51%.

Risk aversion keeps global equities in the red, courtesy of the past week’s 500 bps of central bank interest rate increases as recession fears grow. Global bond yields are rising as the bond sell-off continues. US Treasury yields in the short end of the curve rose above 4%, while the US 10-year benchmark rate hit a daily high of around 3.90%.

Money market futures are discounting a 75 bps rate hike at the Fed’s November meeting, a headwind for the white metal. In the meantime, Fed officials led by Atlanta’s Fed President Bostic and Boston Susan Collins crossed news wires.

On Sunday, Raphael Bostic commented that he believes the Fed can temper inflation without triggering substantial job market losses. He reassured that inflation is “too high,” emphasizing the need to control it.

During the last hour, Bostic crossed wires, acknowledging that events in the UK might put additional stress on Europe and the US in the already tense financial markets. In the meantime, the newest President of the Boston Fed, Susan Collins, commented that the unemployment rate needs to increase so that the US central bank can achieve its inflation goal. She added that she would like “clear and convincing signs” that inflation is cooling and that achieving a soft landing “while challenging, is achievable.”

Even though, Collins said, “a significant economic or geopolitical event could push our economy into a recession as policy tightens further.”

Elsewhere, the US Dollar Index, a measure of the buck’s performance vs. six rivals, edges higher by almost 1%, at 114.159, weighing on the US dollar-denominated silver.

From a technical perspective, it’s worth noting that XAG/USD tumbled below the 20-day EMA of $18.83, exacerbating a fall towards the $18.30s area. Furthermore, the Relative Strength Index (RSI). Shifted negatively, signaling that sellers are gathering momentum. Therefore, if XAG/USD breaks below the $18.00 figure, we could expect a re-test of the YTD lows at around $17.56 in the near- term.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.42 at the time of writing. Pair opened at 18.89 and is trading with a change of -2.49 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.87, 50 SMA 19.3, 100 SMA @ 20.18 and 200 SMA @ 22.06.

The previous day high was 19.71 while the previous day low was 18.77. The daily 38.2% Fib levels comes at 19.13, expected to provide resistance. Similarly, the daily 61.8% fib level is at 19.35, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 18.54, 18.19, 17.6
• Pivot resistance is noted at 19.48, 20.06, 20.41

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