#XAGUSD @ 23.862 Silver price retreats from two-month high, snaps three-day winning streak., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• Silver price retreats from two-month high, snaps three-day winning streak.
• Fortnight-old bullish channel restricts immediate downside ahead of the key SMAs.
• Overbought RSI suggests further pullback in XAG/USD price but bears are far from sight.

The pair currently trades last at 23.862.

The previous day high was 23.93 while the previous day low was 23.24. The daily 38.2% Fib levels comes at 23.67, expected to provide support. Similarly, the daily 61.8% fib level is at 23.5, expected to provide support.

Silver price (XAG/USD) pares weekly gains at the highest levels in two months, mildly offered near $23.85 heading into Friday’s European session. In doing so, the bright metal prints the first daily loss in four ahead of the key inflation data from Eurozone and the US.

Also read: Gold Price Forecast: Inflation data, $1,973 support to restrain XAU/USD bears – Confluence Detector

The precious metal’s latest weakness could be linked to a pullback from the resistance line of a two-week-old bullish channel. The XAG/USD retreat also justifies the overbought RSI (14).

However, bullish MACD signals and the stated channel formation keep the Silver bears off the table unless the quote breaks the $23.30 mark, comprising the stated channel’s lower line.

Even so, the 100-SMA and 200-SMA can challenge the bullion’s additional downside near $22.30 and $21.70.

Should the Silver price remains bearish past $21.70, the odds of witnessing a slump toward the $20.00 round figure and then to the monthly low of $19.90 can’t be ruled out.

On the flip side, XAG/USD recovery needs to cross the immediate channel’s top line, close to $24.05 at the latest.

However, the yearly high marked in February around $24.65 can challenge the Silver buyers before giving back control to them.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.85 at the time of writing. Pair opened at 23.92 and is trading with a change of -0.29 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 22.03, 50 SMA 22.21, 100 SMA @ 22.57 and 200 SMA @ 21.02.

The previous day high was 23.93 while the previous day low was 23.24. The daily 38.2% Fib levels comes at 23.67, expected to provide support. Similarly, the daily 61.8% fib level is at 23.5, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.46, 23.0, 22.76
• Pivot resistance is noted at 24.15, 24.39, 24.85

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