Published on Jun 12, 2023

Daily Analysis For Silver (XAG/USD) 12-06-2023

Sliver (XAG/USD) Analysis

Key Points: -

· Silver prices continue to retreat from the nearly one-month high reached on Friday.

· However, the technical setup suggests the possibility of dip-buying opportunities emerging in the market.

· It is important to monitor the $23.60-55 price level, as a break below this confluence could invalidate the positive outlook for silver.

Today's Scenario: -

Silver prices are extending their retracement slide from the $24.50-$24.55 area, which marked the highest level since May 11. The decline in silver continues on the first day of the new week, with the metal losing ground. The price is currently approaching the 38.2% Fibonacci retracement level of the downward move seen in May, which is around the $24.00 round-figure mark during the Asian session.

Diagram of XAG/USD (Silver): -

Economic Events: -

Date Event Impact Currency

4:15 (New Zealand) Electronic Retail Card Spending YoY Low NZD

4:15 (New Zealand) Electronic Retail Card Spending MoM Low NZD

5:20 (Japan) PPI YoY Low JPY

5:20 (Japan) PPI MoM Low JPY

5:31 (Ireland) Construction PMI Low EUR

10:30 (Finland) Current Account Low EUR

11:30 (Japan) Machine Tool Orders YoY Low JPY

12:30 (Slovakia) Construction Output YoY Low EUR

13:30 (China) Total Social Financing Low CNY

13:30 (China) New Yuan Loans Low CNY

13:30 (China) M2 Money Supply YoY Low CNY

13:30 (China) Outstanding Loan Growth YoY Low CNY

13:30 (Switzerland) Myfxbook USDCHF Sentiment Medium CHF

13:30 (Australia) Myfxbook AUDUSD Sentiment Medium AUD

13:30 (Japan) Myfxbook USDJPY Sentiment Medium JPY

13:30 (European Union) Myfxbook EURUSD Sentiment Medium EUR

13:30 (United Kingdom) Myfxbook GBPUSD Sentiment Medium GBP

13:30 (Canada) Myfxbook USDCAD Sentiment Medium CAD

13:30 (New Zealand) Myfxbook NZDUSD Sentiment Medium NZD

15:15 (European Union) EU Bond Auction Low EUR

15:15 (European Union) 15-Year Bond Auction Low EUR

18:30 (Ecuador) Balance of Trade Low USD

18:30 (France) 3-Month BTF Auction Low EUR

18:30 (France) 12-Month BTF Auction Low EUR

18:30 (France) 6-Month BTF Auction Low EUR

20:30 (Kosovo) Inflation Rate YoY Low EUR

20:30 (United States) Consumer Inflation Expectations Low USD

21:00 (United States) 6-Month Bill Auction Low USD

21:00 (United States) 3-Year Note Auction Low USD

22:30 (United States) 3-Month Bill Auction Low USD

22:30 (United States) 10-Year Note Auction Low USD

23:30 (United States) Monthly Budget Statement Medium USD

Buy Scenario: -

On the Upside direction, bullish traders would likely wait for a sustained move above the $24.45-$24.50 area, which represents the 50% Fibonacci retracement level, before considering fresh buying opportunities. In this scenario, the XAG/USD may target a reclaim of the $25.00 psychological level and continue its ascent towards the $25.35-$25.40 intermediate hurdle. Bulls may then attempt to conquer the $26.00 round figure. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: -

The $24.00 round-figure mark in silver represents a significant horizontal resistance level, which is expected to act as a pivotal point for intraday traders. If the price falls below this level, it could be seen as a buying opportunity, with potential support near the $23.60-$23.55 region. This area combines the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 23.6% Fibonacci retracement level. The positive oscillators on the daily and 4-hour charts further support the idea that this confluence area will act as a strong base for XAG/USD, limiting the downside.

However, if the confluence support is convincingly broken, the bias will shift in favor of bearish traders, leading to aggressive technical selling. This could cause the XAG/USD to accelerate its decline towards the $22.00 mark, followed by a potential test of the nearly two-month low around the $22.70-$22.65 region seen in May. The downward momentum could potentially extend towards the next relevant support near the $22.00 round figure. Till we do not advise selling silver (XAG/USD).