#XAGUSD @ 19.057 -imp levels: Silver struggles to capitalize on the previous day’s modest bounce and edges lower on Wednesday.

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• Silver struggles to capitalize on the previous day’s modest bounce and edges lower on Wednesday.
• Failure to find acceptance above the 61.8% Fibo. level supports prospects for further near-term fall.
• Attempted recovery could be seen as a selling opportunity and remain capped near the $20.00 mark.

The pair currently trades last at 19.057.

The previous day high was 19.28 while the previous day low was 18.8. The daily 38.2% Fib levels comes at 19.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.98, expected to provide support.

Silver meets with a fresh supply on Wednesday and remains on the defensive through the early European session. The white metal is currently placed just above the $19.00 mark and seems vulnerable to slide further.

The overnight recovery move from the vicinity of the monthly low struggled to find acceptance above the 61.8% Fibonacci retracement level of the July-August rally. The subsequent pullback suggests that the bearish pressure might still be far from being over.

Furthermore, technical indicators on the daily chart are holding deep in the negative territory and are still far from being in the oversold zone. This adds credence to the bearish outlook and supports prospects for a further depreciating move for the XAG/USD.

Hence, a decline back towards the weekly low, around the $18.70 region, en route to the next relevant support near the $18.45-$18.40 area, remains a distinct possibility. The downward trajectory could drag the XAG/USD to the YTD low, around the $18.15 zone touched in July.

On the flip side, the overnight swing high, around the $19.25-$19.30 area, now seems to act as immediate resistance. Any further recovery could be seen as a selling opportunity and remain capped near the $19.40-$19.50 area, which coincides with the 50% Fibo. level.

The latter should now act as a pivotal point, which if cleared should lift the XAG/USD to the $19.85 confluence, comprising of the 50-day SMA and the 38.2% Fibo. level. Some follow-through buying beyond the $20.00 mark will suggest that spot prices have bottomed out.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.07 at the time of writing. Pair opened at 19.12 and is trading with a change of -0.26 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.99, 50 SMA 19.93, 100 SMA @ 21.38 and 200 SMA @ 22.54.

The previous day high was 19.28 while the previous day low was 18.8. The daily 38.2% Fib levels comes at 19.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.98, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 18.85, 18.59, 18.37
• Pivot resistance is noted at 19.34, 19.55, 19.82

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