#XAGUSD @ 20.400 Silver advances more than 2%, set to finish the week almost flat. (Pivot Orderbook analysis)

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• Silver advances more than 2%, set to finish the week almost flat.
• US jobs data was mixed, but the unemployment rate rose, signaling the cooling labor market.
• Traders rushed into precious metals, uncertain about next week’s US inflation data, and punished the US Dollar.

The pair currently trades last at 20.400.

The previous day high was 20.3 while the previous day low was 19.98. The daily 38.2% Fib levels comes at 20.17, expected to provide support. Similarly, the daily 61.8% fib level is at 20.1, expected to provide support.

Silver price rallies on the back of a mixed US jobs report that witnessed more Americans than estimated added to the workforce. Even though that would result in a strong US Dollar (USD), the Unemployment rate edged up, taking pressure off the US Federal Reserve (Fed). At the time of writing, the XAG/USD is trading at $20.49 a troy ounce.

Wall Street extended its losses due to a risk-off impulse. The US Department of Labor (DoL) revealed that Nonfarm Payrolls in February rose by 311,000 jobs, more than the 225,000 expected. January’s job numbers were lowered from 517,000 to 504,000. The jobless rate was 3.6%, higher than the forecast of 3.4%, indicating a weaker labor market. Wages rose by 4.6%, and attention turned to the US inflation data next week.

During the week, the US Fed Chair Jerome Powell said that higher and potentially faster interest rate hikes could be needed at his appearance in the US Congress. He added that the US economy remains solid and that the Fed will be watching Nonfarm Payrolls figures and next week’s February Consumer Price Index (CPI) readings.

Market participant’s reaction sees the Federal Reserve hiking 25 bps at the upcoming March meeting. Based on the US jobs data, money market futures expect Powell and Co. will cut rates by the end of 2023.

Additionally, investors sent the greenback tumbling, as shown by the US Dollar Index (DXY) dropping 0.87% at 104.360. US Treasury bond yields extended their losses, with the 10-year yield plunging 16 bps, at 3.741%, a tailwind for precious metals prices. XAG/USD is up more than 2% after testing YTD lows at around $19.92.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 20.49 at the time of writing. Pair opened at 20.06 and is trading with a change of 2.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 21.2, 50 SMA 22.58, 100 SMA @ 22.18 and 200 SMA @ 20.95.

The previous day high was 20.3 while the previous day low was 19.98. The daily 38.2% Fib levels comes at 20.17, expected to provide support. Similarly, the daily 61.8% fib level is at 20.1, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.93, 19.8, 19.61
• Pivot resistance is noted at 20.24, 20.43, 20.56

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