Silver Price Analysis: XAG/USD retraces toward $22.20s on upbeat mood, dragonfly doji surfaces

• XAG/USD drops on risk-on mood and technical factors as a dragonfly doji emerges.
• If the XAG/USD drops below $22.00, sellers would face support barricades in the $21.80-90 area.
• XAG/USD Price Analysis: To consolidate around familiar levels ahead of the FOMC’s decision.

Silver price reversed its bullish course, dropping around 1.20% late in the mid-North American session. After hitting a seven-week high of $22.71 on Monday, the XAG/USD has retraced some of those gains, trading nearby March’s 20 daily low of $22.22. At the time of writing, the XAG/USD is trading at $22.29, down 0.27 percent.

XAG/USD Price action

The week began with the white metal printing a new multi-week high before reversing and closing above $22.50. On its way north, the XAG/USD reclaimed the 200-day EMA, shifting the white metal bias to neutral upwards. Nevertheless, a dragonfly doji emerged at the daily, exacerbating Silver’s fall toward the $22.20 area.

If XAG/USD tumbles below $22.00, that would pave the way for a dip to the 50-day EMA at $21.91, immediately followed by the 100-day EMA At $21.89. Once cleared, the 200-day EMA at $21.81 would be next, ahead of falling to the 20-day EMA at $21.60.

Conversely, the XAG/USD first resistance would be the March 17 daily high at $22.59, followed by the March 20 high at $22.71. Upside risks remain above $23.00.

XAG/USD Daily chart

XAG/USD Technical levels