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

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).


Support and Resistance Level: -


Support            Resistance  

 S1 24.15    -      R1 24.48

 S2 24.01   -       R2 24.67

 S3 23.82   -       R3 24.81


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