#XAGUSD @ 22.240 Silver price plunges 3.74%, on high US Treasury yields, back below $22.30. (Pivot Orderbook analysis)

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• Silver price plunges 3.74%, on high US Treasury yields, back below $22.30.
• Silver Price Analysis: A daily close below $22.24 would exacerbate a fall further; otherwise, a re-test of $23.00 is possible.

The pair currently trades last at 22.240.

The previous day high was 23.24 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.64, expected to provide resistance.

Silver price collapsed from around $23.51 daily high down to $22.23, spurred by high US Treasury yields caused by upbeat US economic data justifying the Federal Reserve’s (Fed) need to continue increasing borrowing costs. Therefore, the XAG/USD drops 3.90%, trading at $22.25.

The XAG/USD daily chart portrays the white metal as upward biased, despite falling from multi-month highs. Should be noted that XAG/USD is testing the November 15 daily high of 22.24, which, once cleared, would exacerbate a deeper correction toward the $22.00 psychological mark, followed by the 200-day Exponential Moving Average (EMA) at $21.02.

The Relative Strength Index (RSI) exited from overbought conditions, triggering a sell signal that caused Monday’s dive, while the Rate of Change (RoC) depicts buyers losing momentum.

Therefore, the XAG/USD might be headed for a pullback. However, if XAG/USD holds its reins above $22.24, that could open the door for consolidation. Hence, the XAG/USD first resistance would be the $22.50 mark, followed by the $23.00 figure. Break above will expose the multi-month high of $23.50.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.26 at the time of writing. Pair opened at 23.14 and is trading with a change of -3.8 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 21.51, 50 SMA 20.22, 100 SMA @ 19.76 and 200 SMA @ 21.32.

The previous day high was 23.24 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.87, expected to provide resistance. Similarly, the daily 61.8% fib level is at 22.64, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.53, 21.93, 21.57
• Pivot resistance is noted at 23.49, 23.84, 24.45

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