Silver Price Analysis: XAG/USD rebound needs validation from $20.30

• Silver extends the week-start recovery towards short-term key hurdle.
• 100-HMA, weekly resistance line challenge buyers amid bullish MACD signals.
• Nearby support line restricts immediate downside ahead of the multi-month low.

Silver Price (XAG/USD) remains on the front foot at around $20.10 during early Tuesday morning in Europe. In doing so, the bright metal rises towards the key $20.30 resistance confluence of late.

Bullish MACD signals and the metal’s ability to stay beyond the immediate support line, near $20.00, keeps the XAG/USD buyers hopeful of overcoming the key hurdle comprising the 100-HMA and one-week-old descending trend line.

Following that, a run-up towards the 200-HMA and 61.8% Fibonacci retracement of June 27 to July 01 downside, near $20.80, appears imminent.

If silver buyers keep reins past $20.80, the run-up could easily cross the $21.00 threshold to direct the upside towards the late June swing high near $22.00.

On the contrary, the aforementioned support line, at $20.00 now, could challenge silver sellers from retaking control.

In a case where the XAG/USD drops past $20.00, the recently refreshed two-year low, around $19.40, will be in focus ahead of the year 2020 peak surrounding $19.00.

To sum up, silver prices are likely to extend the latest recovery but need validation from $20.30.

Silver: Hourly chart

Trend: Limited upside expected