Published on Apr 21, 2023

Daily Analysis For Silver (XAG/USD) 21-04-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:00	(Australia) Judo Bank Services PMI	High	AUD
00:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
00:00	(Australia) Judo Bank Composite PMI	Low	AUD
00:01	(United Kingdom) Gfk Consumer Confidence	High	GBP
00:30	(Japan) Inflation Rate Ex-Food and Energy YoY	Low	JPY
00:30	(Japan) Core Inflation Rate YoY	Medium	JPY
00:30	(Japan) Inflation Rate MoM	Low	JPY
00:30	(Japan) Inflation Rate YoY	High	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Manufacturing PMI	Medium	JPY
05:00	(Japan) 3-Month Bill Auction	Low	JPY
07:00	(United Kingdom) Retail Sales MoM	High	GBP
07:00	(United Kingdom) Retail Sales YoY	High	GBP
07:00	(United Kingdom) Retail Sales ex Fuel MoM	High	GBP
07:00	(United Kingdom) Retail Sales ex Fuel YoY	High	GBP
08:00	(Euro Area) ECB Guindos Speech	High	EUR
08:15	(France) S&P Global Composite PMI	Low	EUR
08:15	(France) S&P Global Manufacturing PMI	Medium	EUR
08:15	(France) S&P Global Services PMI	Medium	EUR
08:30	(Germany) S&P Global Composite PMI	Low	EUR
08:30	(Germany) S&P Global Services PMI	High	EUR
08:30	(Germany) S&P Global Manufacturing PMI	High	EUR
09:00	(Euro Area) S&P Global Manufacturing PMI	High	EUR
09:00	(Euro Area) S&P Global Services PMI	High	EUR
09:00	(Euro Area) S&P Global Composite PMI	Low	EUR
09:00	(Italy) Construction Output YoY	Low	EUR
09:30	(Slovenia) Consumer Confidence	Low	EUR
09:30	(Slovenia) PPI YoY	Low	EUR
09:30	(United Kingdom) S&P Global/CIPS Composite PMI	Low	GBP
09:30	(United Kingdom) S&P Global/CIPS Manufacturing PMI	High	GBP
09:30	(United Kingdom) S&P Global/CIPS UK Services PMI	High	GBP
10:00	(Euro Area) Government Debt to GDP	Medium	EUR
10:00	(Euro Area) Government Budget to GDP	Medium	EUR
10:10	(Italy) Index-Linked BTP Auction	Low	EUR
10:10	(Italy) BTP Short Term	Low	EUR
11:00	(Ireland) Wholesale Prices MoM	Low	EUR
11:00	(Ireland) Wholesale Prices YoY	Low	EUR
13:00	(Kosovo) Balance of Trade	Low	EUR
13:30	(Canada) Retail Sales Ex Autos MoM	High	CAD
13:30	(Canada) Retail Sales YoY	High	CAD
13:30	(Canada) Retail Sales MoM	High	CAD
14:45	(United States) S&P Global Manufacturing PMI	High	USD
14:45	(United States) S&P Global Composite PMI	Medium	USD
14:45	(United States) S&P Global Services PMI	High	USD
15:30	(Slovenia) Unemployment Rate	Low	EUR
15:30	(Euro Area) ECB Elderson Speech	Low	EUR
18:00	(El Salvador) Balance of Trade	Low	USD
18:00	(United States) Baker Hughes Total Rig Count	Low	USD
18:00	(United States) Baker Hughes Oil Rig Count	Low	USD
18:45	(Euro Area) ECB Guindos Speech	High	EUR
21:35	(United States) Fed Cook Speech	Medium	USD

Today's Scenario: - silver experienced some dip-buying near the psychological level of $25.00, leading it to reach a three-day high. However, the uptick lacked any strong bullish conviction, and the precious metal has been fluctuating between minor gains and losses during the early North American trading session. Currently, it is trading around the $25.30 level, with little change from the start of the day.

In terms of technical analysis, silver had previously retreated from a one-year high, reaching levels just above $26.00 last week. The pullback was halted on Wednesday, close to the 23.6% Fibonacci retracement level of the rally that took place between March and April. The support level is now at around $24.65, coinciding with the upward trending 100-period Simple Moving Average (SMA) on the 4-hour chart. This level is expected to act as a crucial point for the white metal's future movement.

Buy Scenario: - The XAG/USD pair has been trading sideways following its recovery from Wednesday's dip towards $24.65. While Thursday's price action appeared to be a hammer, a classic doji emerged, indicating indecision in the market. The RSI has exited overbought conditions and is sloping downwards, which suggests that sellers are gaining momentum. Meanwhile, the Rate of Change (RoC) indicates that buying pressure is fading, and bulls may be jumping off the boat.

If XAG/USD manages to stay above $25.00 in the near term, it may test the year-to-date high of $26.08. Breaking this level could expose the $26.50 resistance before reaching last year's high of $26.94, with $27.00 as the next possible target. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - However, if XAG/USD breaks below the $25.00 support level, the next demand zone would be the April 19 low at $24.65, followed by the psychological price level of $24.00. A dip beyond this area could lead to a decline towards the 50-day EMA support at $23.58. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -