Published on May 22, 2023

Daily Analysis For Silver (XAG/USD) 22-05-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) Machinery Orders YoY	Medium	JPY
00:50	(Japan) Machinery Orders MoM	Medium	JPY
01:00	(Canada) Victoria Day	None	CAD
01:00	(Montenegro) Independence Day	None	EUR
02:15	(China) Loan Prime Rate 1Y	Medium	CNY
02:15	(China) Loan Prime Rate 5Y	Medium	CNY
05:30	(Netherlands) Consumer Confidence	Medium	EUR
06:00	(Estonia) PPI YoY	Low	EUR
06:00	(Estonia) PPI MoM	Low	EUR
07:30	(Switzerland) Industrial Production YoY	Medium	CHF
08:00	(Slovakia) Current Account	Low	EUR
09:00	(Greece) Current Account	Low	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Belgium) Consumer Confidence	Low	EUR
10:00	(Euro Area) Construction Output YoY	Low	EUR
10:45	(European Union) EU Bond Auction	Low	EUR
11:00	(Ireland) Wholesale Prices MoM	Low	EUR
11:00	(Ireland) Wholesale Prices YoY	Low	EUR
11:00	(Luxembourg) Unemployment Rate	Low	EUR
11:30	(Portugal) Current Account	Low	EUR
13:00	(Kosovo) Balance of Trade	Low	EUR
13:30	(United States) Fed Bullard Speech	Medium	USD
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:00	(Euro Area) Consumer Confidence	Medium	EUR
15:50	(United States) Fed Barkin Speech	Medium	USD
15:50	(United States) Fed Bostic Speech	Medium	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
20:00	(El Salvador) Balance of Trade	Low	USD

Today's Scenario: - The price of silver (XAG/USD) is facing difficulties in maintaining its rebound from the key moving average around $23.85 early on Monday. As a result, the precious metal is trading sideways after bouncing back from its lowest levels since late March in the previous session.

The recovery of the RSI (14) line from oversold levels is supporting the rebound of XAG/USD from the 100-day moving average. However, the presence of the 50-day moving average resistance around $24.25, coupled with bearish signals from the MACD indicator, poses a challenge for buyers of the metal.

Buy Scenario: - On the upside, if the price manages to regain momentum above the $24.00 level, it might encounter selling pressure near the $24.25 resistance zone. Any further strength is likely to be limited near the psychological level of $25.00. This is followed by the hurdle at $25.30-$25.40. Only a decisive break above this area would open the door for bulls to target the $26.00 level and challenge the year-to-date peak around the $26.10-$26.15 region, which was reached earlier this month. Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - From a technical perspective, there has been a recent breakdown below the horizontal support level of $24.60-$24.50, which also coincides with the 23.6% Fibonacci retracement level. This favors bearish traders. The oscillators on the daily chart are showing negative readings and are still far from the oversold zone. Additionally, the failure near the $24.00 level on Friday suggests that the XAG/USD has a downward bias.

To confirm further bearishness, it would be prudent to wait for a sustained move below the 100-day simple moving average (SMA) around the $23.35-$23.30 range. This level also marks the lowest point since late March, reached last Thursday. Once below this level, XAG/USD could accelerate its decline towards the 50% Fibonacci retracement level near $23.00, and potentially reach the support zone of $22.65-$22.60, or the 61.8% Fibonacci retracement level at $22.30-$22.25. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -