#XAGUSD @ 22.874 Silver price rebounded to near $23.00 as investors digest higher US inflation data. (Pivot Orderbook analysis)

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• Silver price rebounded to near $23.00 as investors digest higher US inflation data.
• Investors remain confident that the Fed will cut interest rates in March.
• Silver price could slip to $21.88 if the RSI (14) settles below 40.00.

The pair currently trades last at 22.874.

The previous day high was 23.16 while the previous day low was 22.48. The daily 38.2% Fib levels comes at 22.74, expected to provide support. Similarly, the daily 61.8% fib level is at 22.9, expected to provide resistance.

Silver price (XAG/USD) discovered a significant buying interest after printing a fresh seven-week low at $22.50. The white metal has recovered to near $23.00 as bets in favour of a rate-cut decision by the Federal Reserve (Fed) in March remains firmer despite stubbornly higher United States Consumer Price Index (CPI) report for December.

S&P500 futures have generated some losses in the Asian session, portraying a decline in the risk-appetite of the market participants. The US Dollar Index (DXY) has surrendered entire gains generated after the release of the higher-than-projected inflation figures.

The headline inflation expanded at an annual pace of 3.4% against the consensus of 3.2% and the prior reading of 3.1%. While the core CPI that strips of volatile food and oil prices decelerated slightly to 3.9% versus. the prior reading of 4.0%.

Investors remain confident that the Fed will start the ‘rate-cut’ campaign from March despite a sticky inflation report. As per the CME Fedwatch tool, chances in favour of a rate cut by 25 basis points (bps) to 5.00-5.25% remained steady at around 68%.

Silver price discovers some buying interest near the horizontal support plotted from December 13 low at $22.51. The 50-period Exponential Moving Average (EMA) at $23.17 continues to act as a barricade for the Silver price bulls. The Silver price would expose to November 13 low at $21.88 if the asset faces sell-off again.

A bearish momentum would activate if the 14-period Relative Strength Index (RSI) slips into the lower range of 20.00-40.00.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.89 at the time of writing. Pair opened at 22.74 and is trading with a change of 0.66 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.66, 50 SMA 23.66, 100 SMA @ 23.28 and 200 SMA @ 23.63.

The previous day high was 23.16 while the previous day low was 22.48. The daily 38.2% Fib levels comes at 22.74, expected to provide support. Similarly, the daily 61.8% fib level is at 22.9, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.43, 22.11, 21.75
• Pivot resistance is noted at 23.11, 23.47, 23.79

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