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Silver Price Analysis: XAG/USD meets the 200 DMA around $21.75

  • 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
daily SMA20 21.13
daily SMA50 22.52
daily SMA100 22.2
daily SMA200 20.94
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

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