Published on May 9, 2023

Daily Analysis For Silver (XAG/USD) 09-05-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:01	(United Kingdom) BRC Retail Sales Monitor YoY	High	GBP
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
01:00	(Euro Area) Anniversary of Robert Schumans Declaration	None	EUR
01:00	(Luxembourg) Europe Day	None	EUR
02:30	(Australia) Retail Sales MoM	High	AUD
04:00	(China) Exports YoY	Medium	CNY
04:00	(China) Imports YoY	Medium	CNY
04:00	(China) Balance of Trade	High	CNY
04:35	(Japan) 10-Year JGB Auction	Low	JPY
04:35	(Japan) 6-Month Bill Auction	Low	JPY
07:00	(Lithuania) CPI	Low	EUR
07:00	(Lithuania) Inflation Rate MoM	Low	EUR
07:00	(Lithuania) Inflation Rate YoY	Low	EUR
07:00	(United Kingdom) Halifax House Price Index YoY	Medium	GBP
07:00	(United Kingdom) Halifax House Price Index MoM	Medium	GBP
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Imports	Low	EUR
08:00	(Slovakia) Balance of Trade	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(Euro Area) ECB Lane Speech	Low	EUR
09:40	(Spain) 6-Month Letras Auction	Low	EUR
09:40	(Spain) 12-Month Letras Auction	Low	EUR
10:30	(Germany) 5-Year Bobl Auction	Low	EUR
10:30	(Australia) 2023-24 Federal Budget	Medium	AUD
11:00	(United Kingdom) BBA Mortgage Rate	Low	GBP
11:00	(Ireland) Industrial Production YoY	Low	EUR
11:00	(United States) NFIB Business Optimism Index	Low	USD
13:30	(United States) Fed Jefferson Speech	Medium	USD
13:55	(United States) Redbook YoY	Low	USD
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:00	(United States) IBD/TIPP Economic Optimism	Medium	USD
15:30	(United States) NY Fed Treasury Purchases 0 to 1 yrs	Low	USD
17:05	(United States) Fed Williams Speech	Medium	USD
18:00	(United States) 3-Year Note Auction	Low	USD
18:00	(Euro Area) ECB Schnabel Speech	Low	EUR
21:30	(United States) API Crude Oil Stock Change	Medium	USD

Today's Scenario: - Silver has been trading in a narrow range in early European session, hovering around the $25.65-$25.70 region and showing little change for the day. Despite this, the technical setup suggests that bullish traders have an advantage. The metal has repeatedly bounced back from the strong horizontal resistance level turned support at $24.50-$24.40, and dip-buying on Friday has reinforced the positive outlook. In addition, the daily chart's Relative Strength Index (RSI) has eased from the overbought zone, indicating potential for further appreciation.

Buy Scenario: - On the upside, if the price closes above the $25.65 support-turned-resistance level, the buyers could be recalled.

However, the double tops around $26.10 and the overbought RSI (14) line may challenge the silver buyers. If the price remains firm above $26.10 on a daily closing basis, it may target the highs marked in April and March of last year, respectively near $26.25 and $26.95. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - The price of silver (XAG/USD) is currently trading at $25.50, showing a decline for the third consecutive day on early Tuesday. The metal has broken a previously upward-sloping support line from early March, which is now acting as an immediate resistance at around $25.65.

The bearish MACD signals and retreat of the RSI (14) line from overbought territory further support the downside bias. The silver price is likely to head towards the convergence of the 10-day and 21-day moving averages (DMA), approximately around $25.35-30.

If the metal continues to remain bearish past this level, it may target the four-month-old horizontal support zone near $24.55-50. A break below $24.50 makes it vulnerable to plunging towards the early January lows surrounding $23.00. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -