Silver Price Analysis: XAG/USD treads water above $19.50
26.10.2022, 17:12

Silver Price Analysis: XAG/USD treads water above $19.50

  • Silver prices' recovery stalls at $19.50 area.
  • A weaker USD underpins the precious metals recovery.
  • XAG/USD needs to breach an important resistance hurdle at $19.65/75.

Silver prices are trading higher for the second consecutive day on Wednesday, with the white metal extending its recovery from the $18.80 low on Tuesday to two-week highs at $1975, where it seems to have found a significant resistance hurdle.

USD weakness underpinning precious metals’ recovery

The XAG/USD appreciated earlier on Wednesday, fueled by a broad-based US dollar weakness, as the investors start to price in a slowdown on the Federal Reserve’s monetary tightening path.

The positive price action, however, has stalled right below the $19.65/75 area, where the 100-day SMA meets the 50% Fibonacci retracement level of the October 4-14 decline and the September 23 high.

A successful break above that area would put the pair aiming for the $20.00 psychological level (and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.

On the downside, the 50-day SMA, at $19.00 is defending the pair from further decline, so far, with the next potential support area at $18.80 (Oct 25 low) ahead of the October 14 low at Oct 14.

XAG/USD daily chart

Silver daily chart

Technical levels to watch

 

 

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