Published on Mar 20, 2023

Daily Analysis For Silver (XAG/USD) 20-03-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT		Event	Currency
06:00	-	(Estonia) PPI MoM	EUR
06:00	-	(Estonia) PPI YoY	EUR
07:00	-	(Germany) PPI YoY	EUR
07:00	-	(Germany) PPI MoM	EUR
08:00	-	(Switzerland) Myfxbook USDCHF Sentiment	CHF
08:00	-	(Australia) Myfxbook AUDUSD Sentiment	AUD
08:00	-	(Japan) Myfxbook USDJPY Sentiment	JPY
08:00	-	(European Union) Myfxbook EURUSD Sentiment	EUR
08:00	-	(United Kingdom) Myfxbook GBPUSD Sentiment	GBP
08:00	-	(Canada) Myfxbook USDCAD Sentiment	CAD
08:00	-	(New Zealand) Myfxbook NZDUSD Sentiment	NZD
10:00	-	(Euro Area) Balance of Trade	EUR
10:00	-	(Slovakia) Unemployment Rate	EUR
10:30	-	(Germany) 12-Month Bubill Auction	EUR
10:45	-	(European Union) EU Bond Auction	EUR
10:45	-	(European Union) 10-Year Bond Auction	EUR
11:00	-	(Luxembourg) Unemployment Rate	EUR
12:30	-	(Canada) New Motor Vehicle Sales	CAD
14:00	-	(France) 3-Month BTF Auction	EUR
14:00	-	(France) 12-Month BTF Auction	EUR
14:00	-	(France) 6-Month BTF Auction	EUR
14:00	-	(Euro Area) ECB President Lagarde Speech	EUR
15:30	-	(United States) 3-Month Bill Auction	USD
15:30	-	(United States) 6-Month Bill Auction	USD
16:00	-	(Canada) 5-Year Bond Auction	CAD
16:00	-	(Euro Area) ECB President Lagarde Speech	EUR
17:00	-	(El Salvador) Balance of Trade	USD
21:45	-	(New Zealand) Exports	NZD
21:45	-	(New Zealand) Imports	NZD
21:45	-	(New Zealand) Balance of Trade	NZD

Today's Scenario: - During the early hours of the European trading session, silver has dropped from its peak level since February 3, which was reached on the first day of the new week. However, the precious metal has managed to recover some of its losses throughout the day and appears to be continuing its upward trend witnessed in the last two weeks.

Bullish traders are encouraged by last week's sustained breakout above the $21.65-$21.70 confluence resistance level. This breakout was seen as a fresh trigger for bullish traders, and the subsequent move above the 50% Fibonacci retracement level of the recent sharp pullback from a multi-month peak indicates potential for additional gains. Moreover, bullish oscillators on the 4-hour and daily charts suggest that the XAG/USD's momentum is pointing upwards.

Buy Scenario: - The price of silver (XAG/USD) has dropped to a new intraday low near $22.40 as the week begins with the Federal Reserve meeting. This comes after the precious metal hit its highest levels since early February and then reversed from the horizontal area consisting of multiple tops marked since February 03, around $22.60.

It is worth noting that the relative strength index (RSI) (14) was overbought, contributing to the XAG/USD's recent decline from its multi-day high.

Despite this, bullish signals from the moving average convergence divergence (MACD) and the metal's sustained trading above key support levels provide optimism for silver buyers. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - There are some important support levels to keep an eye on for the XAG/USD. One of them is a one-week-old ascending trend line, located around $21.90. Additionally, the 200-bar Exponential Moving Average (EMA) is another key support level at around $21.65.

It's important to note that there are also other potential levels of support for silver bears to watch out for, including the early month swing high near $21.30 and the round figure of $21.00. These levels could act as additional filters before the bears set their sights on the monthly low of $19.90. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -