- XAG/USD advances as US Treasury yields weaken the dollar.
- XAG/USD is testing the confluence of the 50/100/200 day EMAs.
- XAG/USD Price Analysis: Continue to High in the Short Term, Although the Size of the Rally Suggests a Mean Reversion Correction.
XAG/USD rallied strongly in the Monday session, more than 6%, as investors evacuated to safe haven. US Treasury yields plunged as regional bank failures in the United States (US) blamed on rising rates. The plunge in US bond yields is therefore a tailwind for white metal prices. At the time of writing these lines, XAG/USD is trading at $21.76.
XAG/USD Price Action
The white metal is testing solid resistance at the confluence of the 200, 50, and 100-day EMAs, each at $21.79, $21.85, and $21.87, respectively. Furthermore, the Relative Strength Index (RSI) broke above the neutral 50 lines, portraying the strength of the buying pressure. The Rate of Exchange (TCC) suggests that buyers have moved aggressively, which could open the door for a mean reversion move. Therefore, operators must be careful.
A break of the XAG/USD above the 200 day EMA would pave the way towards $22.00 a troy ounce. Once this is done, the next resistance for XAG/USD would be $23.00 before testing the February 23 high at $23.59.
In an alternative scenario, the first support for XAG/USD would be the 20-day EMA at $21.16. A break of the latter would expose the $21.00 figure, followed by the March 13 low of $20.50, before falling to this year’s low of $19.92.
XAG/USD Daily Chart
XAG/USD Technical Levels
|Last price today||21.78|
|Today Change Daily||1.25|
|today’s daily variation||6.09|
|today’s daily opening||20.53|
|previous daily high||20.79|
|previous daily low||19.9|
|Previous Weekly High||21.31|
|previous weekly low||19.9|
|Previous Monthly High||24.64|
|Previous monthly minimum||20.42|
|Fibonacci daily 38.2||20.45|
|Fibonacci 61.8% daily||20.24|
|Daily Pivot Point S1||20.02|
|Daily Pivot Point S2||19.52|
|Daily Pivot Point S3||19.13|
|Daily Pivot Point R1||20.91|
|Daily Pivot Point R2||21.3|
|Daily Pivot Point R3||21.81|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.