Silver price (XAG/USD) remains pressured around $19.30 while reversing the previous day’s upside momentum heading into Thursday’s European open. In doing so, the bright metal pokes the 50-DMA support while reversing from the downward-sloping resistance line from early June.

Following the FOMC decision, despite the rally in the US Dollar as the FOMC raised rates 75bps, gold and silver ironically went higher too. Silver could be on the cusp of a relief rally near term, especially if today’s highs at 19.90 and broken and we get a daily close ABOVE 20.00.

Not only the pullback from the key resistance line but the recent retreat of the RSI and the MACD line also keeps the XAG/USD sellers hopeful.

However, an upward sloping support line from September 01, around $19.20, could act as an extra challenge for the metal bears, in addition to the 50-DMA support of $19.30.

In a case where the quote breaks the $19.20 support, a quick fall towards the $19.00 can’t be ruled out.

Following that, a horizontal support area comprising multiple levels marked since mid-July, near $18.30-25, could act as the last defense of silver buyers.

Alternatively, recovery moves need to cross the aforementioned resistance line, at $19.90 by the press time, to convince buyers.

Even so, the monthly high near the $20.00 threshold and the previous month’s peak of $20.87 could challenge the XAG/USD upside afterward.

Silver has risen back above the crucial 61.8% retracement support of the whole 2020/21 upmove at $18.65/15, however still maintains a large top below $21.39 and we hence expect further downside from here towards the $15.56 support from a technical analysis perspective

Silver High on Hopes For Bulls to Take the Charge

Sep 25 2022