#XAGUSD @ 18.876 Silver price stumbled on risk-aversion as traders turned to cash. (Pivot Orderbook analysis)

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• Silver price stumbled on risk-aversion as traders turned to cash.
• Fed’s Bullard: Traders understood the Fed’s commitment to tackle inflation.
• NATO expressed that Nord Stream 1 and 2 pipeline attack was caused by sabotage.

The pair currently trades last at 18.876.

The previous day high was 18.98 while the previous day low was 17.97. The daily 38.2% Fib levels comes at 18.59, expected to provide support. Similarly, the daily 61.8% fib level is at 18.35, expected to provide support.

Silver price slides for the second time in the week amid falling US Treasury bond yields as Fed officials’ “aggressive” tone, the Europe energy crisis, and UK’s mini-budget presented by Kwasi Kuarteng, UK’s finance minister under Liz Truss government, shifted sentiment sour. Therefore, the XAG/USD is trading at $18.81 a troy ounce, 0.40% below its opening price.

On Thursday, Fed officials led by Regional Fed Presidents, with Cleveland’s Mester and St. Louis Bullard, reiterated that the Federal Reserve is compromised to tackle inflation, even though it could trigger a recession. James Bullard said traders understood that the Fed was serious about achieving the price stability mandate and added the need for higher rates for a “longer period.”

In the meantime, Loreta Mester commented that inflation is the primary concern, added that there is no “case for slowing down,” and foresees rates to peak at around 4.6%.

At the time o typing, the San Francisco Fed Mary Daly said there’s no need to tap the US economy into a recession to curb inflation while adding that “additional interest rates are necessary and appropriate.”

In the meantime, NATO said that the leaks of the Nord Stream pipelines were caused by sabotage and noted that “NATO is committed to deter and defend against hybrid attacks,” and “any deliberate attack against Allies’ critical infrastructure would be met with a united and determined response.”

Although news of the Nord Stream 1 and 2 pipelines spurred a jump in energy prices, WTI and Brent’s crude oil sustained losses of 0.46% and 0.54%, respectively.

Aside from this, the UK’s new Prime Minister Liz Truss, doubled down on its tax-cut budget, saying that she was willing to take “controversial” decisions, though recent reports by the Guardian said that she would hold an emergency meeting with the Office for Budget Responsibility (OBR) on Friday.

Given the fundamental backdrop, XAG/USD prices slid as traders seeking safety preferred to liquidate its positions and braced for cash. Portraying the previously mentioned, US Treasuries remained contained during the session, while the US Dollar Index registered losses of 0.69%, down at 111.040.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.82 at the time of writing. Pair opened at 18.89 and is trading with a change of -0.37 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 18.9, 50 SMA 19.29, 100 SMA @ 20.09 and 200 SMA @ 22.0.

The previous day high was 18.98 while the previous day low was 17.97. The daily 38.2% Fib levels comes at 18.59, expected to provide support. Similarly, the daily 61.8% fib level is at 18.35, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 18.24, 17.6, 17.24
• Pivot resistance is noted at 19.25, 19.62, 20.26

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