#XAGUSD @ 22.346 Silver attracts some buying on Tuesday and holds above the 38.2% Fibo. level support. (Pivot Orderbook analysis)

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• Silver attracts some buying on Tuesday and holds above the 38.2% Fibo. level support.
• The setup favours bearish traders and supports prospects for an eventual breakdown.
• A sustained strength beyond the 50-day SMA is needed to negate the bearish outlook.

The pair currently trades last at 22.346.

The previous day high was 22.62 while the previous day low was 22.15. The daily 38.2% Fib levels comes at 22.33, expected to provide support. Similarly, the daily 61.8% fib level is at 22.44, expected to provide resistance.

Silver regains some positive traction on Tuesday and sticks to its modest intraday gains, just below mid-$22.00s through the early European session. The white metal, however, lacks bullish conviction and remains well within the striking distance of a nearly two-month low touched on Monday.

Looking at the broader picture, the XAG/USD last week confirmed a bearish breakdown through the lower end of a multi-week-old trading range support near the $23.00-$22.90 area. Moreover, bearish technical indicators on the daily chart support prospects for an extension of the recent sharp pullback from the highest level since April 2022 touched last Thursday.

The XAG/USD, however, manages to hold above the $22.15 support zone, or the 23.6% Fibonacci retracement level of the recent rally from October 2022, which should act as a pivotal point. Some follow-through selling below the $22.00 mark will reaffirm the negative bias and drag the white metal to the next relevant support near the 100-day SMA, around the $21.60-$21.55 zone.

On the flip side, any meaningful recovery is likely to confront a hurdle near the aforementioned support breakpoint, around the $23.00-$22.90 region. This is closely followed by the 50-day SMA, currently around the $23.30-$23.35 region. A sustained strength beyond will negate the near-term bearish outlook for the XAG/USD and prompt some short-covering rally.

The momentum might then allow bulls to reclaim the $24.00 round figure. The XAG/USD could eventually climb back to the $24.55-$24.60 heavy supply zone en route to the $25.00 psychological mark for the first time since April 2022 and the next relevant hurdle near the $25.35 region.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.43 at the time of writing. Pair opened at 22.26 and is trading with a change of 0.76 % .

The pair is trading below its 20 Daily moving average @ 23.62, below its 50 Daily moving average @ 23.45 , above its 100 Daily moving average @ 21.72 and above its 200 Daily moving average @ 21.01

The previous day high was 22.62 while the previous day low was 22.15. The daily 38.2% Fib levels comes at 22.33, expected to provide support. Similarly, the daily 61.8% fib level is at 22.44, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.06, 21.87, 21.59
• Pivot resistance is noted at 22.53, 22.81, 23.0

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