Silver Price Analysis: XAG/USD bears eye $22.00 as retreat from 50-SMA persists
- Silver Price takes offers to reverse late Wednesday’s corrective bounce while reversing from 50-SMA.
- Five-week-old descending support line in the spotlight amid looming bear cross, steady RSI.
- XAG/USD needs to cross convergence of 200-SMA, 100-SMA to retake control.
Silver Price (XAG/USD) drops to $22.70 as it portrays one more U-turn from the 50-SMA hurdle amid early Thursday. In doing so, the bright metal justifies the firmer US Dollar amid fears of higher rates.
Also read: US Dollar Index: DXY bulls take a breather around 103.00 with eyes on Fed Chair Powell’s speech
That said, the impending bear cross on the MACD and mostly steady RSI (14) line favor the XAG/USD’s latest pullback.
It should be noted that the $22.50 round figure may act as immediate support for the Silver bears to prod ahead of the visiting a downward-sloping support line from late May, close to $22.00 by the press time.
In a case where the XAG/USD remains bearish past $22.00, which is less likely, the bullion sellers may aim for the 61.8% and 78.6% Fibonacci Expansion (FE) of the precious metal’s June 18-27 moves, respectively near $21.70 and $21.35.
On the flip side, a clear break of the 50-SMA hurdle, around $22.95 at the latest, isn’t an invitation to the Silver buyers as the $23.00 round figure can check the upside moves.
Above all, a convergence of the 200-SMA and the 100-SMA, near $23.45-50, appears a tough nut to crack for the Silver buyers to conquer to retake control.
Silver Price: Four-hour chart
Trend: Further downside expected