Silver Price Analysis: 21-DMA defends XAG/USD bulls above $24.00 despite US rating news inflicted pullback

• Silver Price struggles to defend corrective bounce off 21-DMA as risk aversion prods buyers.
• US credit rating cut weighs on sentiment even as White House, US banks rush to tame fears.
• Oscillators tease XAG/USD bears but $23.10 appears a tough nut to crack for them to retake control.
• Silver Price recovery aims for three-month-old descending resistance line.

Silver Price (XAG/USD) grinds near an intraday high of around $24.40 as it struggles to keep the bounce off 21-DMA during early Wednesday. That said, the bright metal’s latest retreat could be linked to the risk-off mood due to the US credit rating cut by the global rating agency Fitch Ratings.

Also read: Fitch downgrades US government’s AAA credit rating to AA+, US Dollar retreats

It’s worth noting that the XAG/USD snapped a two-day winning streak the previous day but failed to break the 21-DMA.

Even so, the bearish MACD signals and steady RSI, as well as the sour sentiment, challenge the Silver buyers as they brace for the $25.00 round figure.

Following that, a downward-sloping resistance line from early May, close to $25.10, will test the XAG/USD bulls before giving them control.

On the contrary, a daily closing beneath the 21-DMA level of around $24.20 needs validation from the $24.00 round figure to drag the commodity price toward the early July swing high of near $23.30.

However, a convergence of the 200-DMA and a five-month-old rising trend line, close to $23.10, will be a tough challenge for the Silver bears to conquer to keep control afterward.

Silver Price: Daily chart

Trend: Further weakness expected