Silver price soars more than 3%, back above $21.40s, eyeing a break of the 200-DMA. (Pivot Orderbook analysis)

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• Silver price soars more than 3%, back above $21.40s, eyeing a break of the 200-DMA.
• Falling US Treasury yields undermine the greenback, which is also down by more than 0.60%.
• Silver Price Analysis: A daily close above the 200-DMA will exacerbate a rally toward $23.00.

The pair currently trades last at 21.48.

The previous day high was 21.01 while the previous day low was 20.39. The daily 38.2% Fib levels comes at 20.62, expected to provide support. Similarly, the daily 61.8% fib level is at 20.77, expected to provide support.

Silver price rallies sharply and is testing the 200-day Exponential Moving Average (EMA) as US Treasury bond yields drop, undermining the American Dollar, on Tuesday amidst a light economic calendar, as US midterm elections get the center spotlight. At the time of typing, the XAGUSD is trading at $21.47 after hitting a fresh 5-month high at $21.62.

Wall Street trades in the green, registering gains between 1.16% and 1.48%. The midterm elections in the United States are the main driver of the session, underpinning risk-perceived assets linked to equities rallying after the polls. However, the lack of US economic data until Thursday’s Consumer Price Index (CPI) for October is expected to ease, with headline estimated at 8% and core CPI at 6.5% on annual base readings.

Meanwhile, US Treasury yields, particularly the 10-year benchmark note rate, have decreased from weekly highs of 4.24% to 4.141%. Expectations for the Federal Reserve’s December meeting remain tilted towards hiking 50 bps, as shown by the CME FedWatch Tool at 56.8%. The odds for a 75 bps increase are 43.2%, unchanged from a day ago.

The US Dollar Index, which tracks the buck’s value against a basket of peers, plunges 0.66% and exchanges hands at 109.503, though it should be noted that it has fallen from daily highs at around 110.610.

A light US economic docket revealed the US Redbook Index, which came at 7.6% below its previous reading, while the US IBD/IPP Economic Optimism for November dived from 41.6 to 40.4.

Silver price is advancing sharply and pierced the 200-day EMA toward hitting the 5-month high at $21.62. Nevertheless, it trimmed some gains, hoovering around the 200-day EMA at $21.48. if XAGUSD buyers achieve a daily close above the latter, the white metal bias will shift upwards, opening the door for further gains. Hence, the XAGUSD’s first resistance would be $22.00, followed b the June 6 swing high at $22.51, followed by the psychological $23.00.

Technical Levels: Supports and Resistances

EURUSD currently trading at 21.48 at the time of writing. Pair opened at 20.79 and is trading with a change of 3.32 % .

The pair is trading above its 20 Daily moving average @ 19.27, above its 50 Daily moving average @ 19.21 , above its 100 Daily moving average @ 19.46 and below its 200 Daily moving average @ 21.49

The previous day high was 21.01 while the previous day low was 20.39. The daily 38.2% Fib levels comes at 20.62, expected to provide support. Similarly, the daily 61.8% fib level is at 20.77, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 20.44, 20.1, 19.82
• Pivot resistance is noted at 21.07, 21.35, 21.7

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