The cost of silver, denoted by #XAGUSD, sharply decreases to approximately $22.40 following the release of positive US Durable Goods Orders data.

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• Silver price drops vertically to near $22.40 after upbeat US Durable Goods Orders data.

The pair currently trades last at 22.605.

The previous day high was 23.14 while the previous day low was 22.85. The daily 38.2% Fib levels comes at 22.96, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.03, expected to provide resistance.

Silver price (XAG/USD) plunged to near $22.45 in the early New York session after the release of the upbeat Durable Goods Orders data for August. The economic data surprisingly rose by 0.2% vs. expectations of a 0.5% decline. In July, Orders contracted sharply by 5.6% as the US manufacturing sector is going through tough times.

A surprise gain in Orders for core goods indicates that the demand outlook is improving and firms are digesting fears of higher interest rates from the Federal Reserve (Fed). US Manufacturing PMI has been consistently declining for a longer period and a surprise rise in core goods orders may improve factory activities, which would make the US economy more resilient.

Meanwhile, Minneapolis Fed Bank President Neel Kashkari said that there was a risk interest rates might have to go higher but added that it was hard to know. Earlier, Fed Governor Kashkari commented that the economy is fundamentally much stronger than projected. Therefore, more rates seem warranted and are needed to remain high to cool things off.

The US Dollar Index (DXY) extends its upside journey and prints an almost fresh 11-month high at 106.60. 10-year US Treasury yields recovered to near 4.54%.

Silver extends downside to near the support zone plotted in a narrow range of $22.24-22.30 on a two-hour scale. Downward-sloping 20-period Exponential Moving Average (EMA) at $22.87 indicates that the short-term trend is bearish.

The Relative Strength Index (RSI) (14) shifts into the bearish range of 20.00-40.00, which warrants more downside.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 22.5 at the time of writing. Pair opened at 22.86 and is trading with a change of -1.57 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 23.36, 50 SMA 23.59, 100 SMA @ 23.57 and 200 SMA @ 23.47.

The previous day high was 23.14 while the previous day low was 22.85. The daily 38.2% Fib levels comes at 22.96, expected to provide resistance. Similarly, the daily 61.8% fib level is at 23.03, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 22.76, 22.66, 22.47
• Pivot resistance is noted at 23.05, 23.24, 23.34

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