The XAGUSD, currently at 22.548, is experiencing a decline in silver price as it approaches a horizontal support level that has been in place for seven weeks. This decrease in price is happening in a cautious market environment. However, the outlook from @nehcap is that the decline is likely to be limited, suggesting that the downside potential is not expected to be significant.

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• Silver Price retreats towards seven-week-old horizontal support amid cautious mood.

The pair currently trades last at 22.548.

The previous day high was 22.76 while the previous day low was 22.37. The daily 38.2% Fib levels comes at 22.52, expected to provide support. Similarly, the daily 61.8% fib level is at 22.61, expected to provide resistance.

Silver Price (XAG/USD) remains pressured at the lowest level in seven weeks despite making rounds to $22.50 during the early Asian session on Wednesday. In doing so, the bright metal fades the previous day’s corrective bounce off the key support zone amid the market’s broad risk-off mood and the firmer US Dollar and the Federal Reserve (Fed) monetary policy meeting minutes.

It’s worth noting that China-inflicted market pessimism joins the firmer US data to underpin the US Dollar’s run-up and weigh on the XAG/USD ahead of this week’s top-tier catalyst.

Technically, the 100-SMA stays beneath the 200-SMA and portrays the “Bear Cross”, which in turn suggests further downside of the Silver Price. Also keeping the XAG/USD sellers hopeful is the commodity’s sustained trading below a three-week-long descending resistance line.

However, a horizontal area comprising multiple levels marked since June 23, close to $22.10–30, puts a floor under the XAG/USD price amid a nearly oversold RSI (14) line.

In a case where the Silver Price breaks the $22.10 support, it becomes vulnerable to testing the early March swing high of around $21.30 with the $22.00 threshold likely acting as an intermediate halt.

On the flip side, a clear break of the immediate resistance line, close to $22.85 at the latest, will direct the XAG/USD toward the 100-SMA hurdle of around $23.65. Though, the 200-SMA level of near $23.80 acts as the final defense of the Silver sellers.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.54 at the time of writing. Pair opened at 22.6 and is trading with a change of -0.27% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.93, 50 SMA 23.64, 100 SMA @ 24.05 and 200 SMA @ 23.26.

The previous day high was 22.76 while the previous day low was 22.37. The daily 38.2% Fib levels comes at 22.52, expected to provide support. Similarly, the daily 61.8% fib level is at 22.61, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.39, 22.18, 21.99
• Pivot resistance is noted at 22.79, 22.97, 23.18

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