Silver Price Analysis: XAG/USD eyes more downside below $20.50 on upbeat US Job Opening report

• Silver price falls back as US Job Openings data outperformed expectations.
• Upbeat job openings data indicate that labor demand by US employers improves.
• Silver price delivered a breakdown of the H&S chart pattern, which resulted in a vertical sell-off.

Sliver price (XAG/USD) resumes its downside journey as the United States Bureau of Labor Statistics has reported an upbeat JOLTS Job Opening report. In August, employers posted 9.61 million job vacancies against expectations of 8.8 million.

The US Dollar Index (DXY) climbs above a fresh 11-month high at 107.20 on higher-than-expected job vacancies. The 10-year US Treasury yields jump to near 4.75%. Upbeat job openings data indicate that labor demand by US employers improves. This would elevate consumer spending as a significant demand for labor would be offset by offering higher wages from employers.

Meanwhile, investors shift focus to Automatic Data Processing (ADP) Employment Change data for September, which will be published on Wednesday. As per the estimates, the US economy recorded fresh additions of 160K employees against 177K reading in August month.

The S&P500 opens on a bearish note amid a cautious market mood. The escalating expectations about one more interest rate hike from the Federal Reserve (Fed) in the remainder of 2023 have dampened the market mood.

Fed policymakers: Cleveland Fed Bank President Loretta Mester and Fed Governor Michelle Bowman expect that the central bank is not done with hiking interest rates.

Silver technical analysis

Silver price delivers a breakdown of the Head and Shoulder chart pattern on a daily scale, which results in a vertical sell-off. The white metal breaks sharply below the neckline of the aforementioned chart pattern plotted from June 23 low at $22.11. Potential support is placed from March 08 low at $19.93.

The asset trades below the 200-day Exponential Moving Average (EMA), which indicates that the long-term trend is bearish.

The Relative Strength Index (RSI) (14) slips into the bearish range of 20.00-40.00, which warrants more downside.

Silver daily chart