The currency pair XAGUSD experienced a decline of over 4% during this week and dropped to its lowest point in the month, reaching around $22.65.

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• XAG/USD lost more than 4% this week and fell to monthly lows near $22.65.

The pair currently trades last at 22.733.

The previous day high was 23.68 while the previous day low was 23.07. The daily 38.2% Fib levels comes at 23.31, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.45, expected to provide resistance.

On Tuesday, the XAG/USD continued its downward path and fell to its lowest since July 7th. The USD measured by the DXY trades strong above 102.50, but lower yields may cap gains. All eyes are now on inflation data on Thursday.

Federal Reserve (Fed) doves and hawks are battling it out publicly, leaving investors scratching their heads. Michelle Bowman pointed out that more increases will likely be appropriate. At the same time, John Williams showed himself comfortable with the Fed’s monetary policy, stating that the bank has the policy where it wants it to be. On Tuesday’s session, Thomas Barkin gave no highlights and said, “ I don’t want to predeclare where rates will go.

According to the CME FedWatch tool, tightening expectations for the Federal Reserve remains low. The odds of a hike stand near 14% for the September meeting and rise near 30% in November. However, those odds will likely be impacted by inflation figures on Thursday, also dictating the pace for the bond market and the USD. It’s worth noting that non-yielding metals tend to be negatively correlated with higher interest rates, so investors will closely monitor Thursday’s inflation data.

In that sense, the Headline Consumer Price Index (CPI) index is expected to accelerate to 3.3% YoY and the Core CPI, which is seen falling to 4.7% in the same month.

With both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) comfortably placed in negative territory on the daily chart, the XAG/USD sellers hold the upper hand. The downward slope of the Relative Strength Index (RSI) near 30.00 further reinforces this negative sentiment, as does the MACD, which displays red bars, indicating a strengthening bearish momentum. Additionally, the metal is below the 20,100 and 200-day Simple Moving Averages (SMAs), suggesting that the bears are firmly in control of the bigger picture, leaving the buyers with tasks to accomplish.

Support levels: $22.50, $22.30, $22.00.

Resistance levels: $23.20 (200-day SMA), $23.50, $23.70, $24.00.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.71 at the time of writing. Pair opened at 23.13 and is trading with a change of -1.82 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 24.35, 50 SMA 23.72, 100 SMA @ 24.06 and 200 SMA @ 23.19.

The previous day high was 23.68 while the previous day low was 23.07. The daily 38.2% Fib levels comes at 23.31, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.45, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.91, 22.68, 22.29
• Pivot resistance is noted at 23.52, 23.91, 24.13

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