#XAGUSD @ 23.806 Silver’s bounced off daily lows nearby the $23.00 figure and is climbing sharply, gaining 1.33%. (Pivot Orderbook analysis)

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• Silver’s bounced off daily lows nearby the $23.00 figure and is climbing sharply, gaining 1.33%.
• US Dollar continued to weaken, but US Treasury bond yields put a lid on XAG/USD’s rally.
• XAG/USD is exposed to selling pressure below $23.60; otherwise, it could re-test the YTD high.

The pair currently trades last at 23.806.

The previous day high was 24.35 while the previous day low was 23.42. The daily 38.2% Fib levels comes at 23.78, expected to provide support. Similarly, the daily 61.8% fib level is at 23.99, expected to provide resistance.

Silver price is trimming some of Wednesday’s losses and probes the 20-day Exponential Moving Average (EMA) around $23.65 on a trading session characterized by a weaker US Dollar (USD) and a downbeat market mood spurred by recession fears after dismal US data. Therefore, the XAG/USD is trading at $23.74 after hitting a daily low of $23.17.

Silver’s daily chart suggests the white metal could peak around the $24.50s area. The non-yielding metal hasn’t been able to crack the latter, keeping Silver bears hopeful. As XAG/USD has reached higher peaks, the Relative Strength Index (RSI) did not, opening the door for a negative divergence. In addition, the Rate of Change (RoC) in the last two days suggests bearish momentum increased. Hence, a pullback in XAG/USD is on the cards.

For that scenario to play out, the XAG/USD needs to drop below $23.17, so the $23.00 psychological level could be exposed. A breach of the latter will open the door to test the 50-day EMA at $22.87, which, once cleared, will send XAG/USD dropping toward the December 16 low of $22.56.

As an alternate scenario, if Silver reclaims and achieves a daily close above the 20-day EMA, that could pave the way for a re-test of the YTD high of $24.54. Firstly, reclaiming the former would expose the $24.00 handle. The break above will reveal the YTD high at $24.54.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.75 at the time of writing. Pair opened at 23.45 and is trading with a change of 1.28 % .

The pair is trading below its 20 Daily moving average @ 23.78, above its 50 Daily moving average @ 22.89 , above its 100 Daily moving average @ 21.11 and above its 200 Daily moving average @ 21.06

The previous day high was 24.35 while the previous day low was 23.42. The daily 38.2% Fib levels comes at 23.78, expected to provide support. Similarly, the daily 61.8% fib level is at 23.99, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 23.14, 22.82, 22.21
• Pivot resistance is noted at 24.06, 24.66, 24.98

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