Published on Mar 21, 2023

Daily Analysis For Silver (XAG/USD) 21-03-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:30	(Australia) RBA Meeting Minutes	High	AUD
02:30	(New Zealand) Credit Card Spending YoY	Low	NZD
06:00	(Finland) Unemployment Rate	Low	EUR
06:25	(Switzerland) SNB 2022 Annual Report	Low	CHF
07:00	(European Union) New Car Registrations YoY	Medium	EUR
07:00	(Switzerland) Balance of Trade	Medium	CHF
07:00	(United Kingdom) Public Sector Net Borrowing Ex Banks	Low	GBP
07:00	(United Kingdom) Public Sector Net Borrowing	Low	GBP
09:30	(Slovenia) PPI YoY	Low	EUR
10:00	(Euro Area) Construction Output YoY	Low	EUR
10:00	(Euro Area) ZEW Economic Sentiment Index	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	(Latvia) PPI MoM	Low	EUR
11:00	(Latvia) PPI YoY	Low	EUR
12:30	(Canada) CPI Trimmed-Mean YoY	High	CAD
12:30	(Canada) CPI Median YoY	High	CAD
12:30	(Canada) Inflation Rate MoM	Medium	CAD
12:30	(Canada) Core Inflation Rate YoY	Medium	CAD
12:30	(Canada) Inflation Rate YoY	High	CAD
12:30	(Canada) Core Inflation Rate MoM	Low	CAD
12:30	(Euro Area) ECB President Lagarde Speech	Medium	EUR
12:55	(United States) Redbook YoY	Low	USD
13:30	(Euro Area) ECB Enria Speech	Low	EUR
14:00	(United States) Existing Home Sales MoM	High	EUR
14:00	(United States) Existing Home Sales	High	USD
14:30	(Slovenia) Unemployment Rate	Low	EUR
15:00	(New Zealand) Global Dairy Trade Price Index	Low	NZD
15:30	(United States) 52-Week Bill Auction	Low	USD
15:30	(Euro Area) ECB Enria Speech	Low	EUR
17:30	(United States) 20-Year Bond Auction	Low	USD
20:30	(United States) API Crude Oil Stock Change	Medium	USD
21:00	(New Zealand) Westpac Consumer Confidence	Low	USD

Today's Scenario: - The price of silver (XAG/USD) is currently trading in a narrow range below $22.60 in the Tokyo session. The metal initially recovered after a correction from $22.20, but failed to extend its gains as investors are uncertain about the Federal Reserve's (Fed) interest rate decision on Wednesday. Concerns over banking turmoil have made investors skeptical about whether the Fed will continue to hike rates or maintain its current stance.

However, a recovery in the S&P500 suggests that investors have started to digest the volatility caused by the banking fiasco. S&P500 futures have extended gains, indicating an improvement in market participants' risk appetite. It appears that investors have welcomed liquidity assistance from various financial institutions, which have stepped forward to support the First Republic Bank.

Buy Scenario: - On the other hand, the $22.70 area, which was reached on Monday and represents a multi-week high, could present an immediate obstacle before the 61.8% Fibonacci retracement level, around the $22.85 area, and the $23.00 level. Further buying could lead to a test of the next significant resistance level around the $23.25-$23.35 zone, followed by a potential move towards the $24.00 level. If the bulls continue to gain momentum, they may target the multi-month high around the $24.65 region that was reached in February. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - If the Silver price dips towards the overnight swing low around the $22.20 level, it could be viewed as an opportunity to buy. However, if the XAG/USD falls below the $22.00 level, it could move to the $21.65-$21.70 level, which is a confluence resistance break point consisting of the 200-period Simple Moving Average on the 4-hour chart and the 38.2% Fibo level. This level is critical and could act as a pivotal point.

If the XAG/USD convincingly breaks below the $21.65-$21.70 level, it could fall towards the $21.00 level, which represents the 23.6% Fibo level. The XAG/USD might then be vulnerable to accelerate the decline, testing the $20.55-$20.50 intermediate support, and eventually breaking through the psychological $20.00 level. The downward trend could extend further towards the next relevant support near the $19.60 region. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -