Published on Apr 18, 2023

Daily Analysis For Silver (XAG/USD) 18-04-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
01:00	(Cyprus) Orthodox Easter Tuesday	None	EUR
02:30	(Australia) RBA Meeting Minutes	High	AUD
03:00	(China) Industrial Capacity Utilization	Low	CNY
03:00	(China) Retail Sales YoY	High	CNY
03:00	(China) Industrial Production YoY	High	CNY
03:00	(China) Fixed Asset Investment (YTD) YoY	Medium	CNY
03:00	(China) GDP Growth Rate YoY	High	CNY
03:00	(China) GDP Growth Rate QoQ	Medium	CNY
03:00	(China) Unemployment Rate	High	CNY
07:00	(United Kingdom) Average Earnings excl. Bonus (3Mo/Yr)	Low	GBP
07:00	(United Kingdom) Average Earnings incl. Bonus (3Mo/Yr)	Medium	GBP
07:00	(United Kingdom) Unemployment Rate	High	GBP
07:00	(United Kingdom) Claimant Count Change	High	GBP
07:00	(United Kingdom) Employment Change	High	GBP
07:00	(United Kingdom) HMRC Payrolls Change	Low	GBP
09:00	(Italy) Balance of Trade	Medium	EUR
09:40	(Spain) 3-Month Letras Auction	Low	EUR
10:00	(China) FDI (YTD) YoY	Medium	CNY
10:00	(Euro Area) ZEW Economic Sentiment Index	Medium	EUR
10:00	(Euro Area) Balance of Trade	Medium	EUR
10:00	(Germany) ZEW Current Conditions	Low	EUR
10:00	(Germany) ZEW Economic Sentiment Index	High	EUR
10:00	(United Kingdom) 30-Year Treasury Gilt Auction	Low	GBP
11:00	(Ireland) Balance of Trade	Low	EUR
13:30	(Canada) New Motor Vehicle Sales	Low	CAD
13:30	(Canada) Inflation Rate MoM	Medium	CAD
13:30	(Canada) Core Inflation Rate YoY	Medium	CAD
13:30	(Canada) Inflation Rate YoY	High	CAD
13:30	(Canada) Core Inflation Rate MoM	Low	CAD
13:30	(Canada) CPI Median YoY	High	CAD
13:30	(Canada) CPI Trimmed-Mean YoY	High	CAD
13:30	(United States) Housing Starts	Medium	USD
13:30	(United States) Building Permits	High	USD
13:30	(United States) Housing Starts MoM	Medium	USD
13:30	(United States) Building Permits MoM	Medium	USD
13:55	(United States) Redbook YoY	Low	USD
14:00	(Ecuador) Balance of Trade	Low	USD
14:00	(Euro Area) ECB Elderson Speech	Low	EUR
16:00	(New Zealand) Global Dairy Trade Price Index	Low	NZD
16:30	(United States) 52-Week Bill Auction	Low	USD
18:00	(United States) Fed Bowman Speech	Medium	USD
21:30	(United States) API Crude Oil Stock Change	Medium	USD

Today's Scenario: - Silver is starting the new week on a positive note, as it rebounds from the pullback it experienced on Friday from its recent high above $26.00, marking a new one-year high. The precious metal is currently showing moderate gains, trading around the $25.45 level as it heads into the North American trading session. It appears that silver is poised to continue its upward momentum, which has been ongoing for the past month or so.

The recent breach of the strong horizontal barrier at $24.30-$24.40, followed by a move beyond the psychological level of $25.00, strengthens the positive near-term outlook for XAG/USD. However, the daily chart's slightly overbought Relative Strength Index (RSI) may limit traders from making aggressive bets and restrain any significant upside movements, at least for now.

Buy Scenario: - For a potential recovery in silver(XAG/USD) price, the previous support line from mid-March, around $25.25, needs to act as a validation level. If the commodity manages to stay above this level, the late 2021 high near $25.40 and the latest peak of almost $26.10 can act as additional resistance levels for the XAG/USD bulls to overcome before targeting the April 2022 high of $26.22 and the 2021 high of $26.95. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - The price of silver, denoted as XAG/USD, is currently trading around the $25.00 level, down for the third consecutive day in Asia. The precious metal broke below a one-month-old ascending support line, which is now acting as immediate resistance, and is extending the pullback from the one-year high reached last week. The impending bear cross on the Moving Average Convergence Divergence (MACD) indicator is adding to the downside pressure.

However, a resistance-turned-support line from early January, located near $24.85, is likely to offer some support to the XAG/USD bears. If the bears manage to break below this level, the tops marked in February and January, around $24.65 and $24.55 respectively, could be the next support levels, followed by the 21-day Moving Average (DMA) support of around $24.15. If the bearish momentum continues, the commodity could slump towards March’s high of nearly $23.50. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -