Silver (XAG/USD) slides sharply on Thursday, after the Federal Reserve’s first monetary policy meeting, left open the door for a rate hike in March, as Fed’s Chairman Jerome Powell mentioned. At the time of writing, XAG/USD is trading at $22.58, down more than 3.97%.

The market sentiment remains positive, as portrayed by European and US equities climbing. In the meantime, the US Dollar Index, a measurement of the greenback value against six peers, advances 1.33%, sitting at 97.224, its highest level since July 2020.

Silver extended its recent rejection slide from the very important 200-day SMA and witnessed some follow-through selling for the fifth successive day on Thursday. The downward trajectory dragged the white metal to the $23.00 neighbourhood, or a one-and-half-week low during the mid-European session.

The aforementioned handle coincides with the 50% Fibonacci retracement level of the $21.43-$24.70 strong move up. Given that technical indicators on the daily chart have just started drifting into the negative territory, a convincing break below will now be seen as a fresh trigger for bearish traders.

Some follow-through selling below last week's swing low, around the $22.80 area, will reaffirm the negative outlook and prompt aggressive technical selling. The XAG/USD might then turn vulnerable to accelerate the fall towards the $22.20 intermediate support en-route the $22.00 round-figure mark.

On the flip side, any meaningful recovery attempt might now confront stiff resistance and remain capped near the 38.2% Fibo. level, around the $23.40-$23.45 zone. Some follow-through buying might trigger a short-covering move towards the $24.00 mark, representing the 23.6% Fibo. level resistance.

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