#XAGUSD @ 23.697 Silver takes offers to renew intraday low as US Dollar licks its wound ahead of the key data. (Pivot Orderbook analysis)

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• Silver takes offers to renew intraday low as US Dollar licks its wound ahead of the key data.
• Sluggish markets, China-inspired optimism put a floor under XAG/USD prices.
• Firmer prints of US Q4 GDP could renew hawkish Fed bets and extend latest pullback.

The pair currently trades last at 23.697.

The previous day high was 23.94 while the previous day low was 23.33. The daily 38.2% Fib levels comes at 23.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.57, expected to provide support.

Silver price (XAG/USD) renews intraday low near $23.75 as it adds to the weekly gains ahead of Thursday’s European session. In doing so, the bright metal drops for the first time in three days as traders stay cautious ahead of the key US data comprising the first readings of the US fourth quarter (Q4) Gross Domestic Product (GDP).

It should be noted that the latest Reuters poll challenging the market optimism toward growth conditions seems to weigh on the XAG/USD price. “Global economic growth is forecast to barely clear 2% this year, according to a Reuters poll of economists who said the greater risk was a further downgrade to their view, at odds with widespread optimism in markets since the start of the year.

Additionally, the downbeat performance of US equities in the last few days and anxiety ahead of the top-tier data, as well as hopes of more rate hikes, also challenge the sentiment and please the Silver buyers.

Alternatively, the softer US Treasury yields and downbeat expectations from the scheduled US data keep the US Dollar on bear’s radar, which in turn put a floor under the Silver prices. It’s worth mentioning that the receding market bets on the Fed’s hawkish move and chatters surrounding the policy pivot also seem to favor the XAG/USD buyers.

On the same line could be optimism in Hong Kong as the nation’s equity benchmark Hang Seng leads the Asia-Pacific gainers with above 2.0% gains by the press time even if markets in Australia, India and China are closed. The reason for the upbeat sentiment could be linked to the market chatters suggesting strong holiday spending in China, the world’s biggest commodity user.

Looking forward, the US Q4 GDP is expected to ease and personal spending might also recede during the Q4, which in turn allows the Fed policymakers to go soft on their rate hike trajectory. The same could direct market players away from the US Dollar and may underpin the XAG/USD upside.

Silver price takes a U-turn from the downward-sloping resistance line from January 16, close to $24.00 by the press time, as it drops back towards the 50-DMA support of $23.15.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.74 at the time of writing. Pair opened at 23.9 and is trading with a change of -0.67% % .

The pair is trading below its 20 Daily moving average @ 23.79, above its 50 Daily moving average @ 23.1 , above its 100 Daily moving average @ 21.39 and above its 200 Daily moving average @ 21.02

The previous day high was 23.94 while the previous day low was 23.33. The daily 38.2% Fib levels comes at 23.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.57, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.5, 23.12, 22.9
• Pivot resistance is noted at 24.11, 24.33, 24.72

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