Daily Analysis For Silver (XAG/USD) 13-06-2023

Daily Analysis For Silver (XAG/USD) 13-06-2023

Sliver (XAG/USD) Analysis


Key Points: -



·       Silver price gains momentum to recover from early-week losses and rebounds off the 100-hour moving average (HMA).


·       The convergence of the 50-hour moving average and a downward trend line from Friday's trading session is currently acting as an immediate resistance for XAG/USD, especially with the upcoming release of US CPI data.


·       Additionally, the 200-hour moving average and a two-week-old upward support line serve as downside barriers for silver.


·       However, the presence of positive oscillators and the ability to maintain trading above significant technical levels provide optimism for silver buyers.


Today's Scenario: -


On Tuesday, silver experiences a strong and significant upward movement, effectively reversing a considerable portion of the decline observed the previous day, where it dropped below the $23.00 mark. The white metal sustains its positive momentum throughout the first half of the European session and currently resides near the upper boundary of its daily trading range, approximately around the $24.20 area. This represents a gain of more than 0.50% for the day.

Diagram of XAG/USD (Silver): -


Economic Events: -


Date    Event                                                                                                                Impact    Currency

4:15     (New Zealand) Visitor Arrivals YoY                                                        Low      NZD

5:20     (Japan) BSI Large Manufacturing QoQ                                                Low      JPY

6:00     (Australia) Westpac Consumer Confidence Change                       High     AUD

6:00     (Australia) Westpac Consumer Confidence Index                           High     AUD

7:00     (Australia) NAB Business Confidence                                                 High     AUD

11:30   (Germany) Harmonised Inflation Rate MoM                                        Low      EUR

11:30   (Germany) Harmonised Inflation Rate YoY                                           Low      EUR

11:30   (Germany) Inflation Rate MoM                                                         Medium      EUR

11:30   (Germany) Inflation Rate YoY                                                            Medium      EUR

11:30   (Germany) CPI                                                                                             High      EUR

11:30   (United Kingdom) Average Earnings excl. Bonus (3Mo/Yr)              Low      GBP

11:30   (United Kingdom) Average Earnings incl. Bonus (3Mo/Yr)       Medium      GBP

11:30   (United Kingdom) Unemployment Rate                                               High      GBP

11:30   (United Kingdom) Claimant Count Change                                         High      GBP

11:30   (United Kingdom) Employment Change                                               High      GBP

11:30   (United Kingdom) HMRC Payrolls Change                                           Low      GBP

12:30   (Lithuania) Current Account                                                                    Low      EUR

12:30   (Spain) CPI                                                                                                  High      EUR

12:30   (Spain) Core Inflation Rate YoY                                                              Low       EUR

12:30   (Spain) Harmonised Inflation Rate MoM                                             Low       EUR

12:30   (Spain) Harmonised Inflation Rate YoY                                                Low       EUR

12:30   (Spain) Inflation Rate MoM                                                                     Low       EUR

12:30   (Spain) Inflation Rate 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

14:10   (Spain) 3-Month Letras Auction                                                             Low       EUR

14:30   (Euro Area) ZEW Economic Sentiment Index                            Medium        EUR

14:30   (Germany) ZEW Economic Sentiment Index                                    High        EUR

14:30   (Germany) ZEW Current Conditions                                                    Low        EUR

14:30   (United Kingdom) 10-Year Treasury Gilt Auction                             Low        GBP

14:40   (Italy) 3-Year BTP Auction                                                                     Low         EUR

14:40   (Italy) 7-Year BTP Auction                                                                     Low         EUR

14:40   (Italy) 30-Year BTP Auction                                                                  Low         EUR

15:00   (Germany) 5-Year Bobl Auction                                                          Low          EUR

15:15   (Euro Area) ECB Enria Speech                                                            Low          EUR

15:30   (Latvia) Current Account                                                                      Low         EUR

15:30   (United States) NFIB Business Optimism Index                            Low          USD

17:30   (Ecuador) Balance of Trade                                                                 Low          USD

18:00   (United States) Core Inflation Rate MoM                                 Medium          USD

18:00   (United States) Inflation Rate MoM                                                 High          USD

18:00   (United States) Core Inflation Rate YoY                                          High          USD

18:00   (United States) Inflation Rate YoY                                                    High          USD

18:00   (United States) CPI                                                                               High          USD

18:00   (United States) CPI s.a                                                                        High          USD

18:15   (Germany) Current Account                                                                Low          EUR

18:25   (United States) Redbook YoY                                                             Low          USD

19:30   (United Kingdom) BoE Gov Bailey Speech                              Medium         GBP

20:30   (United Kingdom) BoE Dhingra Speech                                         Low          GBP

21:00   (United States) 52-Week Bill Auction                                              Low          USD

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


Buy Scenario: -


In this process, the precious metal continues its recovery from the 100-hour moving average (HMA), which began late on Monday. The bullish signals on the MACD indicator and the relative strength index (RSI) line, which approaches the 50 level, further contribute to the upward momentum.


However, the presence of the 50-hour moving average (50-HMA) and a declining trend line from Friday introduces caution to the market's sentiment as it awaits the release of the US Consumer Price Index (CPI) for May. These factors pose a challenge to the silver price's ability to break above the resistance confluence at $24.20.


With that being said, a clear breakthrough above $24.20 would confidently target the monthly high recorded last Friday at approximately $24.52, with an ultimate goal of reaching the significant round figure of $25.00.


It's important to note that a silver price rise beyond $25.00 holds great importance, as it would enable the bulls to once again reach the highs achieved in April and May, around the levels of $26.10-15. Till we did not recommend buying Silver (XAG/USD).


Sell Scenario: -


On the downside, immediate declines in silver prices are constrained by the round figure support at $24.00, positioned ahead of the 100-hour moving average (100-HMA) support at around $23.95.


Even if the bears in XAG/USD manage to break below the $23.95 support, the 200-hour moving average (200-HMA) and an upward-sloping support line originating from May 26, located near $23.80 and $23.65 respectively, would act as additional obstacles before the sellers gain control. Till we do not advise selling silver (XAG/USD).


Support and Resistance Level: -

 Support           Resistance  

 S1 23.86   -     R1 24.28

 S2 23.66  -      R2 24.50

 S3 23.43  -      R3 24.70


default man
Trade360 Review 2023: Account Options, Trading Hours, Security Measures, Pros and Cons

Trade360 Review 2023: Account Options, T...

Finexo Review 2023: Account Types, Spreads, Customer Support and Expert Analysis

Finexo Review 2023: Account Types, Sprea...

eToro Review 2023:  Trading Platforms, Instrument Variety Pros and Cons

eToro Review 2023: Trading Platforms, I...

Comprehensive Review of FXTrading.com: Pros and Cons of a Leading Trading Platform

Comprehensive Review of FXTrading.com: P...

Sky Alliance Markets Review 2023: Pros, Cons, and Trading Features

Sky Alliance Markets Review 2023: Pros, ...