Silver price stumbles at a key resistance level as the New York session progresses due to US economic data justifying further Federal Reserve’s actions, while a risk-on impulse keeps safe-haven assets pressured, but the US Dollar, which bucked the trend, as the next week’s Federal Reserve monetary policy decision lurks. The XAG/USD is trading at $19.17 a troy ounce, down by 2%, after hitting a daily high at $19.63.

In doing so, the bright metal fades the previous day’s bounce off the 200-SMA while staying inside a two-week-long rising wedge bearish chart pattern.

Given the gradual recovery of the RSI (14), the metal’s recovery in the last week appears interesting to lure buyers.

However, a clear upside break of the stated wedge’s resistance line, near $19.95, as well as a clearance of the $20.00 threshold, becomes necessary for the XAG/USD’s run-up.

Following that, $20.30 and $20.85 can challenge the silver buyers before directing them to the monthly peak surrounding $21.25.

Alternatively, the downside break of the $19.45 level comprising the immediate support line, forming part of the rising wedge, could lure the XAG/USD bears to challenge the 200-SMA level near $19.30.

In a case where silver bears remain dominant past $19.30, the $18.90 level may test the downside before highlighting the theoretical target of the rising wedge breakdown, close to $17.70.

Overall, the silver price may witness further downside but the bears need a solid trigger to push back the bullish hopes.

On the upside, a confirmation above $19.70 would face another key resistance area in the vicinity of the $20.00 psychological level (September 9, 12, and 21 highs and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.

50EMA to provide temporary bullish momentum to silver

Oct 30 2022