#XAGUSD @ 21.268 Silver is seen consolidating this week’s downfall back closer to the YTD low. (Pivot Orderbook analysis)

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• Silver is seen consolidating this week’s downfall back closer to the YTD low.
• The setup favours bearish traders and supports prospects for further losses.
• A sustained move beyond the $22.00 barrier could negate the bearish bias.

The pair currently trades last at 21.268.

The previous day high was 21.68 while the previous day low was 21.27. The daily 38.2% Fib levels comes at 21.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 21.52, expected to provide resistance.

Silver enters a bearish consolidation phase on Friday and oscillates in a narrow trading band through the early European session. The white metal is currently placed around the $21.30-$21.25 area, just above the YTD low touched last week, and seems vulnerable to slide further.

The XAG/USD now seems to have found acceptance below the 50% Fibonacci retracement level of the recent rally from October 2022. This comes on the back of this week’s repeated failures near the $22.00 mark, or the 100-day Simple Moving Average (SMA), and could be seen as a fresh trigger for bearish traders.

That said, Relative Strength Index (RSI) on the daily chart is flashing slightly oversold conditions and warrants some caution. This makes it prudent to wait for some near-term consolidation or a modest bounce before placing fresh bearish bets around the XAG/USD positioning for any further depreciating move.

Nevertheless, the XAG/USD seems poised to weaken further below the $21.00 mark (200-day SMA) and accelerate the fall towards the next relevant support near the $20.60 zone. The downward trajectory could get extended further towards the $20.00 psychological mark en route to the $19.75-$19.70 region.

On the flip side, the $21.55-$21.60 region now seems to act as an immediate hurdle. Any subsequent move-up might continue to attract fresh sellers near the $22.00 mark. The said handle is closely followed by the 38.2% Fibo. level, around the $22.15 zone, which should now act as a key pivotal point.

A sustained strength beyond could trigger a short-covering rally and lift the XAG/USD towards the $22.55-$22.60 supply zone. Bulls might eventually aim to reclaim the $23.00 round-figure mark, which coincides with the 23.6% Fibo. level.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 21.29 at the time of writing. Pair opened at 21.34 and is trading with a change of -0.23 % .

The pair is trading below its 20 Daily moving average @ 22.34, below its 50 Daily moving average @ 23.19 , below its 100 Daily moving average @ 22.02 and above its 200 Daily moving average @ 21.02

The previous day high was 21.68 while the previous day low was 21.27. The daily 38.2% Fib levels comes at 21.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 21.52, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 21.18, 21.02, 20.77
• Pivot resistance is noted at 21.59, 21.84, 22.0

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