Silver Price Analysis: XAG/USD, steady above $19.60 after rejection at $20.00 area

• Silver prices have found support at $19.60 after rejection at $20.00.
• Precious metals consolidate in a cautious session with all eyes on the FOMC.
• XAG/USD faces a strong resistance area between $19.70 and $20.00.

Silver prices remain moderately bid for the second consecutive day on Wednesday, with downside attempts contained above $19.60 so far while, on the upside, resistance at the $20.00 area is holding bulls.

Rangebound trading ahead of the FOMC

Precious metals are moving within previous ranges, with investors in a cautious mood ahead of a long/awaited Fed monetary policy decision. The XAG/USD has been moving back and forth between $19.60 and $19.90, barely changing on the daily chart.

The Fed is widely expected to deliver a 75 basis point hike, the fourth consecutive such move, but the focus will be on the monetary policy statement. Increasing market voices have anticipated a signal of softer rate hikes from December onwards, and therefore, any hint in that direction might trigger significant volatility in the FX markets.

XAG/USD capped below important resistance in the $20 area

From a technical point of view, silver remains capped below an important resistance area between 50% and 61,8% Fibonacci retracement of the October 4 to 14 decline, that is, between $19.70 and $20.00. Above here, the next upside target would be $20.85 October 6 and 7 highs.

On the downside, the 100-day SMA, around $19.6o is supporting the near-term positive outlook. Below here the $18.80/90 area and the October 20 low at $18.20 would come into focus.

Technical levels to watch