Silver Price Analysis: XAG/USD capped below a key resistance area at $19.60/70
- Silver prices tick down after failing to breach the $19.60/70 resistance area.
- The 100-day SMA and 50% Fibonacci retracement are putting a lid on XAG/USD’s recovery.
- The near-term bias remains positive, with downside attempts limited at $19.30.
Silver prices have ticked lower on Thursday, as the recovery from Tuesday’s low at $18.80, failed about 100 pips higher, capped by an important resistance hurdle.
Silver bulls, capped at the 100-day SMA
The XAG/USD seems unable to break above the resistance area at $19.60/70, where the 100-day SMA and the 50% Fibonacci retracement of the October 4 to 14 decline are posing a significant resistance to the white metal’s recovery.
The pair seems to have lost momentum on Thursday, weighed by a somewhat firmer US dollar, although it maintains the near-term positive bias, with downside attempts limited above the 38.2% Fibonacci retracement, at $19.30 and the 50-day SMA, at $19.10.
On the upside, a confirmation above $19.70 would face another key resistance area in the vicinity of the $20.00 psychological level (September 9, 12, and 21 highs and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.
A bearish reaction below the 50-day SMA, at $19.10 would negate the positive trend and set the pair aiming towards, $18.80 (Oct 25 low) and October 14 low at $18.10.