Silver Price Analysis: XAG/USD slumps to two-day lows around $22.10s
- Silver price stumbles beneath $22.14 amidst overall USD strength.
- Silver Price Analysis: Break below $22.00 would exacerbate a test of a symmetrical triangle break around $21.80.
Silver price dropped from daily highs hit at 22.59, testing the current week’s lows of 22.14, due to speculations that the Federal Reserve (Fed) would continue to tighten monetary conditions, even though recessionary risks are skewed to the upside. Therefore, the US Dolla (USD) got bolstered by safe-haven flows, to the detriment of precious metals. At the time of writing, the XAG/USD is trading at 22.19.
Silver Price Analysis: XAG/USD Technical Outlook
Since tumbling more than 3.80% on Monday, the XAGU/USD remains downward pressured, registering fresh two-day lows beneath $22.17, which would exacerbate a fall towards the top trendline of a symmetrical triangle broken last Thursday. Of note, the Relative Strength Index (RSI) and the Rate of Change (RoC), depict the white metal buying pressure fading, and unless buyers step in around $22.00, further downward action is warranted.
Therefore, the XAG/USD first support would be the $22.00 figure. Break below will expose the 20-day Exponential Moving Average (EMA) at 22.21.53, followed by the trend-setter 200*day EMA at $21.03. On the flip side, the XAG/USD first resistance would be the $23.00 psychological level. A breach of the latter will expose the December 5 swing high at $23.51, followed by the $24.00 mark.