XAG/USD Price Analysis: Extends losses toward support at $21.50 psychological level
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XAG/USD Price Analysis: Extends losses toward support at $21.50 psychological level

  • Silver price persists as market caution prevails regarding the Fed's interest rate trajectory.
  • Momentum indicators signal a potential bearish sentiment in the price movements.
  • The psychological level at $21.50 emerges as the immediate support.

Silver price continues to follow its downward trajectory, trading lower around $21.80 during the Asian session on Monday. The prices of non-yielding assets like Silver face challenges, primarily due to the upbeat US Treasury Yields. The yield on the 10-year US Treasury bond stands at 4.61%, up by 0.96% by the press time.

Furthermore, China released its Manufacturing PMI data over the weekend, indicating improvement and entering positive territory. However, this positive development did not seem to have a favorable impact on Silver prices.

Chinese NBS Manufacturing PMI for August increased to 50.2 from the previous 49.7 figures, surpassing the anticipated 50.0. Additionally, the Non-Manufacturing PMI climbed to 51.7 from the previous reading of 51.0, exceeding the market consensus of 51.5.

The current downward momentum in the pair appears to have a bearish bias, given that the 14-day Relative Strength Index (RSI) remains below the 50 level.

The XAG/USD pair could meet support at the $21.50 psychological level, following the $21.00 level.

On the upside, the 23.6% Fibonacci retracement at $22.46 lined up with the seven-day Exponential Moving Average (EMA) at $22.49.

A firm break above the latter could influence the XAG/USD pair to explore the area around the 14-day EMA at $22.79, followed by the $23.00 psychological level.

The Moving Average Convergence Divergence (MACD) indicator is providing a weak signal for the Silver bulls. The MACD line lies below the centerline and the signal line. This configuration suggests that there is potentially weak momentum in the XAG/USD's price movement.

XAG/USD: Daily Chart

XAG/USD: additional important levels

Overview
Today last price 21.86
Today Daily Change -0.33
Today Daily Change % -1.49
Today daily open 22.19
 
Trends
Daily SMA20 23.07
Daily SMA50 23.44
Daily SMA100 23.51
Daily SMA200 23.45
 
Levels
Previous Daily High 23.56
Previous Daily Low 22.12
Previous Weekly High 23.65
Previous Weekly Low 22.12
Previous Monthly High 24.82
Previous Monthly Low 22.12
Daily Fibonacci 38.2% 22.67
Daily Fibonacci 61.8% 23.01
Daily Pivot Point S1 21.69
Daily Pivot Point S2 21.18
Daily Pivot Point S3 20.24
Daily Pivot Point R1 23.13
Daily Pivot Point R2 24.07
Daily Pivot Point R3 24.58