#XAGUSD @ 23.880 Silver rises over 1.50%, benefitting from Fed’s dovish stance, and US bond yields fall. (Pivot Orderbook analysis)

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• Silver rises over 1.50%, benefitting from Fed’s dovish stance, and US bond yields fall.
• As investors priced in a pause in Fed’s tightening cycle, the 10-year bond yield and the US Dollar tumbled.
• Technical outlook shows a sideways trend as XAG/USD battles to stay below 20 and 50-day EMAs; Support areas and potential resistance levels are highlighted.

The pair currently trades last at 23.880.

The previous day high was 23.62 while the previous day low was 23.1. The daily 38.2% Fib levels comes at 23.42, expected to provide support. Similarly, the daily 61.8% fib level is at 23.3, expected to provide support.

Silver price advanced steadily by more than 1.50% on Thursday, sponsored by several reasons. Firstly, dovish remarks by Federal Reserve (Fed) officials tumbled US bond yields in the last 48 hrs. Relief of the US debt-ceiling saga, advancing to the US Senate, and weakening in manufactury activity, were the final nails in the coffin for the greenback. Therefore, the XAG/USD is exchanging hands at $23.85 after diving as low as $23.28.

The US 10-year Treasury bond yield drops four basis points (bps) from around 3.64% to 3.60%, a tailwind for the non-yielding metal. Consequently, the US Dollar Index (DXY) plummeted more than 0.50%, at 103.573, as investors began to price in Fed’s first pause after hiking 500 bps.

XAG/USD remains sideways after an ongoing correction lifted Silver from around two-month lows of $22.68. Even though the 200-day Exponential Moving Average (EMA) price level cushioned Silver’s fall, downside risks persist as XAG/USD battles to stay below the 20 and 50-day EMAs, at $23.80 and $23.93, respectively.

In that outcome, the following support areas would be the 100—day EMA at $23.47. A breach of the latter and XAG/USD could dive below the $23.00 figure to re-test the 200-day EMA at $22.85, briefly tested on May 25 and 26.

Conversely, XAG/USD’s first resistance would be the 50-day EMA at $23.93. Once surrendered, the $24.00 mark is up for grabs, followed by a crucial April 25 swing low test, which turned resistance at $24.49.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 23.88 at the time of writing. Pair opened at 23.51 and is trading with a change of 1.57 % .

The pair is trading below its 20 Daily moving average @ 24.07, below its 50 Daily moving average @ 24.42 , above its 100 Daily moving average @ 23.35 and above its 200 Daily moving average @ 22.08

The previous day high was 23.62 while the previous day low was 23.1. The daily 38.2% Fib levels comes at 23.42, expected to provide support. Similarly, the daily 61.8% fib level is at 23.3, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 23.2, 22.89, 22.68
• Pivot resistance is noted at 23.72, 23.93, 24.24

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