Silver Price Analysis: XAG/USD bounces off six-week-long support line, $23.75 checks bulls on US NFP day

• Silver Price snaps three-day losing streak by recovering from 1.5-month-old rising support line.
• Convergence of 50-DMA, 38.2% Fibonacci retracement challenges XAG/USD buyers.
• 200-DMA, $23.00 appear tough nuts to crack for Silver bears during further downside.
• Firmer US NFP can trigger XAG/USD retreat but sellers have a bumpy road to travel.

Silver Price (XAG/USD) prints the first daily gains in four as it rebounds from the lowest level in three weeks amid early Friday in Asia. In doing so, the XAG/USD prints mild gains around $23.60 while bouncing off an upward-sloping support line from June 23.

Adding credence to the corrective bounce could be the US Dollar’s consolidation ahead of the US employment report for June.

Also read: Forex Today: A cautions tone ahead of NFP

However, a convergence of the 50-DMA and 38.2% Fibonacci retracement of the metal’s March-May upside, near $23.75, appears the key upside hurdle to watch during the further recovery of the Silver Price.

Even if the precious metal manages to cross the $23.75 hurdle, the late July swing low of around $24.05 and June’s peak of near $24.55 can act as additional upside filters before giving control to the XAG/USD buyers.

Following that, July’s high of around $25.30 will be the last defense of the Silver sellers before challenging the yearly peak of near $26.15 marked in May.

On the flip side, a daily closing beneath the stated immediate support line, close to $23.45 at the latest, won’t provide open invitations to the Silver bears as the 200-DMA can prod a further downside near $23.15.

In a case where the XAG/USD remains bearish past $23.15, an ascending trend line from March and a 50% Fibonacci retracement together highlight the $23.00 round figure as the key support to watch for bears.

Silver Price: Daily chart

Trend: Pullback expected