#XAGUSD @ 20.883 Silver prices surge 7% to hit three-week highs near $21.00. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Silver prices surge 7% to hit three-week highs near $21.00.
• The US dollar falls as US labor markets show signs of easing.
• XAGUSD has reached an important resistance level at $20.90.

The pair currently trades last at 20.883.

The previous day high was 19.55 while the previous day low was 18.84. The daily 38.2% Fib levels comes at 19.27, expected to provide support. Similarly, the daily 61.8% fib level is at 19.11, expected to provide support.

Silver prices skyrocketed on Friday, propelled by a weak US dollar, following a mixed US Non-Farm Payrolls report. The precious metal appreciated about 7% on the day, breaking beyond the top of the last two weeks’ trading range, around $20, to hit three-week highs at $20.80 so far.

The release of the US Non-Farm Payrolls report sent the US dollar tumbling earlier today. Non-Private payrolls increased to 261K in October, beating expectations of a 200K rise, and September’s figures have been revised up to 315K from the 264K initially estimated.

On the other hand, the unemployment rate has increased to 3.7% from 3.5% in September and wage inflation slowed down to 4.7% from 5% over the previous month. These figures suggest that labor market conditions might be easing, which brings the possibility of a dovish pivot in December back to the table.

From a technical point of view, silver is now right below an important resistance area at $20.90, where October 6 and 7 highs meet the 38,2% Fibonacci Retracement of the April – September decline.

With the pair now reaching overbought levels in hourly and daily charts, the possibility of a moderate pullback before further rally should be contemplated.

On the Upside, above $20.90, the next potential targets are October 4 high at $21.25 and. The 200-day SMA at 21.55.

On the downside, the intra-day level at $20.55 is holding bears for the time being, with the next potential targets at $20.00 previous resistance, and the 50-day SMA at $19.20.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.87 at the time of writing. Pair opened at 19.47 and is trading with a change of 7.19 % .

The pair is trading above its 20 Daily moving average @ 19.18, above its 50 Daily moving average @ 19.13 , above its 100 Daily moving average @ 19.48 and below its 200 Daily moving average @ 21.51

The previous day high was 19.55 while the previous day low was 18.84. The daily 38.2% Fib levels comes at 19.27, expected to provide support. Similarly, the daily 61.8% fib level is at 19.11, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.02, 18.57, 18.31
• Pivot resistance is noted at 19.73, 19.99, 20.44

[/s2If]
Join Our Telegram Group