The XAGUSD, currently trading at 22.812, has surpassed the $22.70 mark, experiencing an increase of over 0.80% and is on track to end the week with positive gains.
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- The XAG/USD jumped above $22.70, seeing more than 0.80% gains and is set to close a winning week.
The pair currently trades last at 22.812.
The previous day high was 22.88 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.51, expected to provide support. Similarly, the daily 61.8% fib level is at 22.65, expected to provide support.
The XAG/USD surpassed the $22.70 mark on Friday and registered an increase of over 0.80%. This positive momentum positions it for a week of gains after two weeks of losses. The boost in Silver prices can be explained by the release of soft Core Personal Consumption Expenditures (PCE) data from the US from May, which revealed a decline to 4.6% year-on-year in May, falling short of expectations. As a result, the US dollar and US bond yields retreated in response to the data favoring the precious metal.
The US’s Core Personal Consumption Expenditures (PCE), which measures the amount of money consumers spend in a month excluding seasonally volatile products such as food and energy, witnessed a decline in May. The figure decelerated from 4.7% to 4.6% YoY in May, while the headline dropped from 4.6% to 3.8%.
As a reaction, the DXY Index dropped from 103.55 to 102.90 while US bond yields which could be considered the opportunity cost of holding non-yielding precious metals retreated from daily highs. In that sense, the yield on the 2-year Treasury Bond reached a peak of 4.93%, marking its highest level since March 9 and subsequently pulled back to 4.85%. In addition, the 5-year and 10-year rates experienced declines, with the former falling to 4.13% and the latter dropping to 3.83%.
Focus now shifts to next week’s labor market data from the US, including ADP, Jobless Claims on Thursday, and the Nonfarm Payrolls report on Friday.
According to the daily chart, the XAG/USD appears bearish in the short term. The Relative Strength (RSI) and Moving Average Convergence Divergence (MACD) both remain in negative territory, suggesting that the sellers have the upperhand. In addition, traders should eye a bearish cross performed by the 20 and 100-day Simple Moving Average (SMA) of $23.35, which could fuel further downside.
On the downside, support levels to watch stand up at the 200-day SMA at $22.53, followed by $22.30 and June lows at $22.15. On the flipside, resistances are seen at $23.00 followed by $23.10 and the mentioned convergence of SMA’s at $23.35.
Technical Levels: Supports and Resistances
XAGUSD currently trading at 22.78 at the time of writing. Pair opened at 22.58 and is trading with a change of 0.89 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 22.78 |
| 1 | Today Daily Change | 0.20 |
| 2 | Today Daily Change % | 0.89 |
| 3 | Today daily open | 22.58 |
The pair is trading below its 20 Daily moving average @ 23.4, below its 50 Daily moving average @ 23.99 , below its 100 Daily moving average @ 23.34 and above its 200 Daily moving average @ 22.56
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 23.40 |
| 1 | Daily SMA50 | 23.99 |
| 2 | Daily SMA100 | 23.34 |
| 3 | Daily SMA200 | 22.56 |
The previous day high was 22.88 while the previous day low was 22.28. The daily 38.2% Fib levels comes at 22.51, expected to provide support. Similarly, the daily 61.8% fib level is at 22.65, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 22.28, 21.98, 21.68
- Pivot resistance is noted at 22.88, 23.18, 23.47
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 22.88 |
| Previous Daily Low | 22.28 |
| Previous Weekly High | 24.20 |
| Previous Weekly Low | 22.11 |
| Previous Monthly High | 26.14 |
| Previous Monthly Low | 22.68 |
| Daily Fibonacci 38.2% | 22.51 |
| Daily Fibonacci 61.8% | 22.65 |
| Daily Pivot Point S1 | 22.28 |
| Daily Pivot Point S2 | 21.98 |
| Daily Pivot Point S3 | 21.68 |
| Daily Pivot Point R1 | 22.88 |
| Daily Pivot Point R2 | 23.18 |
| Daily Pivot Point R3 | 23.47 |
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