Silver Price Analysis: XAG/USD snaps four-day downtrend as bulls attack $22.30 hurdle
- Silver picks up bids to refresh intraday high, bounces off two-month low.
- 100-EMA, bearish MACD signals challenge XAG/USD buyers around multi-day low.
- Convergence of 200-EMA, 38.2% Fibonacci retracement level puts a floor under the Silver price.
Silver price (XAG/USD) buyers jostle with the key Exponential Moving Average (EMA) hurdle as the bright metal rebounds from the two-month low to print the first daily gains in five, up 0.60% intraday near $22.30 during early Wednesday.
In doing so, the XAG/USD pokes the 100-EMA while paring the latest losses. However, the bearish MACD signals and the metal’s trading below the previous support line from early December 2022, now resistance line around $23.05, challenges the Silver buyers.
That said, a clear upside break of the 100-EMA hurdle surrounding $22.30 could quickly propel the quote to the $23.00 round figures before highlighting the support-turned-resistance line near $23.05.
Following that, multiple resistances could challenges Silver buyers near $23.20 and $24.30 ahead of directing the quote towards the monthly high of $24.63.
On the flip side, the 200-EMA and 38.2% Fibonacci retracement level of the metal’s upside from September 2022 to early in February 2023 together offers the $22.00-21.95 crucial support.
In a case where Silver remains bearish past $21.95, the 50% and 61.8% Fibonacci retracements, respectively near $21.10 and $20.25, could challenge the XAG/USD bears. Also acting as the downside filter is the $20.00 round figure.
Overall, Silver price is likely to improve but the bulls are far from taking the control back.
Silver price: Daily chart
Trend: Limited recovery expected