Silver Price Analysis: XAG/USD fluctuates around $20.00 as bears take a respite

• Silver price stabilizes after sliding close to 5% on Tuesday.
• XAG/USD Price Analysis: To resume its downward bias after dropping below $21.00.

Silver price reached a multi-month low of around $19.92, but buyers stepped in, dragging the XAG/USD price above the $20.00 figure.

Wall Street finished the session mixed. The US Federal Reserve Chair Jerome Powell rattled the US equities market after commenting that to testify against the US Congress with a consistent hawkish tone. Therefore, the US Dollar (USD) consolidates yesterday’s gains, as shown by the US Dollar Index up 0.09%, at 105.710.

XAG/USD Price Action

After dropping almost 5% on Tuesday, the XAG/USD collapse appears to have found a temporal bottom. The XAG/USD printed a new YTD low at $19.92. Wednesday’s price action formed a doji, indicating that buyers and sellers are at equilibrium. The Relative Strength Index (RSI) is at oversold conditions as sellers take a breather, while the Rate of Change (RoC) suggests that sellers are gathering momentum.

If the XAG/USD tumbles below the YTD low at $19.92, the next line of defense for XAG bulls would be $19.00, ahead of sliding toward November’s 3 low at $18.84.

In an alternate scenario, the XAG/USD first resistance would be February’s 28 daily low turned resistance at $20.43. A breach of the latter will clear the pave toward March’s 2 low at $20.68, before testing the $21.00 psychological level.

XAG/USD Daily chart

XAG/USD Technical levels