Silver Price Analysis: XAG/USD sellers approach $20.20 support confluence

• Silver price holds lower ground near the short-term key support comprising 50-day EMA, three-week-old ascending support line.
• Receding bullish MACD signals, sustained pullback from 61.8% Fibonacci retracement tease sellers.
• Bulls need validation from $21.00 to retake control.

Silver price (XAG/USD) remains pressured at around $20.30, keeping the previous day’s bearish bias during Friday’s Asian session. In doing so, the bright metal holds on to the latest downside break of the 50% Fibonacci retracement level of the June-July fall amid recently easing bullish signals of the MACD.

That said, the quote’s U-turn from the 61.8% Fibonacci retracement level earlier in the week also keeps XAG/USD sellers hopeful to conquer the $20.20 support confluence including the 50-DMA and an upward sloping trend line from July 25.

It’s worth noting that the silver sellers might search for the daily closing below the $20.00 threshold to validate the weakness past $20.20.

Following that, a south-run towards the five-week-long horizontal area near $19.55-45 can’t be ruled out.

Meanwhile, the 50% and the 61.8% Fibonacci retracement levels, respectively near $20.35 and $20.85 could restrict short-term upside moves of the silver price.

Should the quote manage to cross the $20.85 hurdle, the mid-June swing low near $21.00 will act as an extra filter to the north before directing the XAG/USD buyers towards the June 27 peak of $21.53.

Silver: Daily chart

Trend: Further weakness expected