Forex world

November 17, 2022

XAGUSD approach resistance $21.20

- Silver price remains pressured around intraday low, prints three-day downtrend.

- 200-DMA break, easing bullish bias of MACD keeps sellers hopeful.

- XAGUSD bulls have a bumpy road ahead unless crossing June’s peak.

Silver price (XAGUSD) takes offers to refresh intraday low near $21.35 during the three-day downtrend amid early Thursday.

In doing so, the bright metal justifies the previous day’s downside break of the 200-DMA, as well as the receding bullish bias of the Moving Average Convergence and Divergence (MACD) indicator.

With this, the XAGUSD bears are all set to retest the resistance-turned-support line stretched from early August, around $21.20. Also increasing the importance of the stated support is the previous monthly high.

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Should the commodity prices remain bearish past $21.20, the $21.00 round figure and August month’s high near $21.85 will be on the silver bear’s radar.

It should be noted that the 61.8% Fibonacci retracement level of the metal’s downside between June and September, around $20.60, could act as the last defense of the XAGUSD bears before directing them to the $20.00 key support comprising 50% Fibonacci retracement level.

Meanwhile, recovery moves remain elusive unless the quote stays below the 200-DMA level of $21.45.

Even so, the $22.00 threshold and the monthly high near $22.25 could challenge the silver buyers before highlighting June’s monthly top surrounding $22.50.

Trend: Further downside expected

Silver price: Daily chart

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