Silver Price Analysis: XAG/USD bears might now aim to test YTD low, around $20.45 area

FXStreet · 22 Jun 2022 3.3K Views
  • Silver witnessed fresh selling on Wednesday and broke through the $21.50 horizontal support.
  • The technical set-up favours bearish traders and supports prospects for an extension of the fall.
  • Sustained strength beyond the $22.00 mark is needed to negate the near-term bearish outlook.

Silver came under renewed selling pressure on Wednesday and broke down below the $21.50-$21.45 support zone held since the beginning of the current week. The intraday decline extended through the first half of the European session and dragged spot prices to a one-week low, around the $21.25 region.

Given that the XAG/USD has been struggling to find acceptance above the 200-period SMA on the 4-hour chart and repeatedly failed ahead of the $22.00 mark, the downfall favours bearish traders. The negative outlook is reinforced by the fact that oscillators on 4-hour/daily charts have again started drifting into the bearish territory.

The technical set-up supports prospects for a further near-term depreciating move and could drag the XAG/USD back to the $21.00 mark en-route the monthly low, around the $20.90 region. The downward trajectory could get extended towards the YTD low, around the $20.45 region set in May, before the white metal drops to the $20.00 psychological mark.

On the flip side, any meaningful recovery attempt now seems to confront stiff resistance near the $21.45-$21.50 horizontal support breakpoint. A subsequent move up would be seen as a selling opportunity near the $21.75 region (200-period SMA). This, in turn, should cap the upside for the XAG/USD near the $21.90-$22.00 heavy supply zone.

Silver 4-hour chart


Key levels to watch


Today last price 21.4
Today Daily Change -0.29
Today Daily Change % -1.34
Today daily open 21.69
Daily SMA20 21.82
Daily SMA50 22.53
Daily SMA100 23.52
Daily SMA200 23.36
Previous Daily High 21.94
Previous Daily Low 21.49
Previous Weekly High 22.02
Previous Weekly Low 20.9
Previous Monthly High 23.28
Previous Monthly Low 20.46
Daily Fibonacci 38.2% 21.77
Daily Fibonacci 61.8% 21.66
Daily Pivot Point S1 21.48
Daily Pivot Point S2 21.26
Daily Pivot Point S3 21.03
Daily Pivot Point R1 21.92
Daily Pivot Point R2 22.16
Daily Pivot Point R3 22.37

Affected Trading Instrument

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