Published on Jun 19, 2023

Daily Analysis For Silver (XAG/USD) 19-06-2023

Sliver (XAG/USD) Analysis

Key Points: -

· Silver price is starting the trading week on a negative note as it reverses the previous day's upward movement from the weekly high.

· The retreat of the Relative Strength Index (RSI) from levels above 50.0 indicates the potential for further pullback in the XAG/USD price.

· The 100-day Simple Moving Average (SMA) and a horizontal support zone that has been in place for two weeks are acting as barriers to short-term declines in the price of silver.

· Silver bears maintain their optimism unless they observe a sustained break below the 50% Fibonacci retracement level.

Today's Scenario: -

Silver price (XAG/USD) is currently consolidating the gains made in the previous day, which were the largest in over a week. However, it is currently easing within a descending triangle formation that has been in place for the past two weeks. The price of silver has dropped to $24.05 after reversing from the upper line of the triangle.

Diagram of XAG/USD (Silver): -

Economic Events: -

Date Event Impact Currency

04:00 (New Zealand) Services NZ PSI Low NZD

04:00 (New Zealand) Composite NZ PCI Low NZD

05:30 (United States) Juneteenth None USD

09:05 (Japan) 52-Week Bill Auction Low JPY

13:30 (Australia) Myfxbook AUDUSD Sentiment Medium AUD

13:30 (Switzerland) Myfxbook USDCHF Sentiment Medium CHF

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

13:30 (Euro Area) ECB Survey of Monetary Analysts Low EUR

15:00 (Germany) 12-Month Bubill Auction Low EUR

16:00 (Portugal) Current Account Low EUR

16:30 (Euro Area) ECB Lane Speech Low EUR

17:10 (Euro Area) ECB Schnabel Speech Low EUR

18:00 (Canada) PPI YoY Low CAD

18:00 (Canada) PPI MoM Low CAD

18:00 (Canada) Raw Materials Prices YoY Low CAD

18:00 (Canada) Raw Materials Prices MoM Low CAD

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

19:30 (United States) NAHB Housing Market Index Medium USD

23:30 (Euro Area) ECB Guindos Speech High EUR

Buy Scenario: -

A recovery in XAG/USD, a breakout from the descending triangle to the upside is required. In such a scenario, the previously mentioned resistance line around $24.20 will come into focus.

However, to gain more confidence, the silver buyers would need to sustain a break above the 50% Fibonacci retracement level of the metal's downturn from May 5th to May 25th, located near $24.45, followed by the psychological level of $24.50.

Overall, silver price is currently consolidating recent gains amid a quiet Asian session due to the observance of the Juneteenth holiday in the US. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: -

The retreat of the Relative Strength Index (RSI) from above the 50.0 level further supports the potential pullback in the XAG/USD price.

The presence of the 100-day Simple Moving Average (SMA) and the lower line of the triangle, located near $23.70 and $23.20 respectively, are acting as support levels and limiting the short-term downside for silver. Additionally, the bullish signals from the Moving Average Convergence Divergence (MACD) indicator also pose a challenge for the silver bears.

If the Silver price remains bearish and breaks below $23.20, the $23.00 level may provide an additional support before directing the bears towards the previous monthly low around $22.70. Till we do not advise selling silver (XAG/USD).