Daily Analysis For Silver (XAG/USD) 25-05-2023

Daily Analysis For Silver (XAG/USD) 25-05-2023

Sliver (XAG/USD) Analysis
Key Points
Sliver (XAG/USD)
• The price of silver is currently in a stagnant phase following its recent drop to a two-month low. The XAG/USD pair is now anticipating potential short-covering as several technical indicators align.
• The convergence of the 200-day Exponential Moving Average (EMA) and the 38.2% Fibonacci retracement level, coupled with an oversold reading on the Relative Strength Index (RSI) with a period of 14, suggests a potential rebound in the near future.
• However, silver buyers may encounter challenges as they approach the 100-day EMA and a horizontal resistance level that has been in place for multiple days. Furthermore, bearish signals from the Moving Average Convergence Divergence (MACD) indicator add to the cautious outlook.
Today's Scenario: - Silver is facing challenges in capitalizing on its recent rebound, as it oscillates within a narrow trading range. Despite the bounce from around the $23.00 level, which also corresponds to the 50% Fibonacci retracement level of the rally seen from March to May, the white metal is struggling to make significant gains. During the first half of the European session, silver has been fluctuating between modest gains and minor losses. Currently, it is trading just below the mid-$23.00s, showing little change for the day.
Diagram of XAG/USD (Silver)
XAG/USD
Economic Events : -
GMTEventImpactCurrency
00:01(United Kingdom) Car Production YoYLowGBP
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
01:00(Australia) RBA Payments System Board MeetingLowAUD
04:35(Japan) 40-Year JGB AuctionLowJPY
07:00(Germany) GDP Growth Rate QoQMediumEUR
07:00(Germany) GDP Growth Rate YoYMediumEUR
07:00(Germany) GfK Consumer ConfidenceHighEUR
07:45(France) Business ConfidenceMediumEUR
07:45(France) Business Climate IndicatorLowEUR
08:00(Spain) PPI YoYLowEUR
09:30(Slovenia) Tourist Arrivals YoYLowEUR
09:30(Slovenia) Business ConfidenceLowEUR
10:00(Euro Area) ECB Annual Report 2022LowEUR
10:00(Euro Area) ECB Guindos SpeechHighEUR
10:10(Italy) BTP Short TermLowEUR
11:00(United Kingdom) CBI Distributive TradesMediumGBP
11:00(Latvia) Unemployment RateLowEUR
12:00(Canada) CFIB Business BarometerLowCAD
13:30(Canada) Manufacturing Sales MoMLowCAD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(United States) Initial Jobless ClaimsHighUSD
13:30(United States) Chicago Fed National Activity IndexMediumUSD
13:30(United States) Real Consumer Spending QoQLowUSD
13:30(United States) GDP Sales QoQLowUSD
13:30(United States) Core PCE Prices QoQLowUSD
13:30(United States) PCE Prices QoQLowUSD
13:30(United States) GDP Price Index QoQMediumUSD
13:30(United States) Corporate Profits QoQMediumUSD
13:30(United States) GDP Growth Rate QoQMediumUSD
13:30(Canada) Average Weekly Earnings YoYLowCAD
15:00(United States) Pending Home Sales YoYMediumUSD
15:00(United States) Pending Home Sales MoMMediumUSD
15:30(United States) EIA Natural Gas Stocks ChangeLowUSD
15:30(United States) Fed Collins SpeechMediumUSD
16:00(United States) Kansas Fed Composite IndexLowUSD
16:00(United States) Kansas Fed Manufacturing IndexLowUSD
16:30(United States) 8-Week Bill AuctionLowUSD
16:30(United States) 4-Week Bill AuctionLowUSD
17:30(United Kingdom) BoE Haskel SpeechLowGBP
18:00(United States) 7-Year Note AuctionLowUSD
23:00(New Zealand) ANZ Roy Morgan Consumer ConfidenceLowNZD
Today's Scenario: - Silver is facing challenges in capitalizing on its recent rebound, as it oscillates within a narrow trading range. Despite the bounce from around the $23.00 level, which also corresponds to the 50% Fibonacci retracement level of the rally seen from March to May, the white metal is struggling to make significant gains. During the first half of the European session, silver has been fluctuating between modest gains and minor losses. Currently, it is trading just below the mid-$23.00s, showing little change for the day.
Buy Scenario: - On the upside, a daily close above the 100-day EMA at $23.50 would be necessary to anticipate a potential recovery in Silver Price.
However, before the buyers gain control, they would need to overcome a horizontal area that has acted as resistance since early 2023, located around $24.55-65.
Overall, Silver price is expected to witness a corrective bounce from the mentioned support levels, but the upside potential appears limited. Till we did not recommend buying Silver (XAG/USD).
Sell Scenario: - The sellers of Silver Price (XAG/USD) are taking a pause as the metal hovers around the lowest levels seen in four weeks, trading around $23.00 during early Thursday in Asia.
Following three consecutive days of decline, the silver market is currently experiencing a back-and-forth movement near the monthly low. The oversold reading on the Relative Strength Index (RSI) with a period of 14 presents a challenge for further downside momentum in XAG/USD.
In this context, it is crucial for Silver sellers to monitor the convergence of the 200-day Exponential Moving Average (EMA) and the 38.2% Fibonacci retracement level, which reflects the metal's upside movement from September 2022 to May 2023. This support confluence is located near $22.80.
If XAG/USD disregards the oversold RSI and breaks below the $22.80 support level, a rapid decline towards the 50% Fibonacci retracement level around $21.80 and the upward-sloping support line from September 2022, near $20.90, cannot be ruled out. Till we do not advise selling silver (XAG/USD).
Support and Resistance Level: -
SupportResistance
S1 22.88-R1 23.39
S2 22.70-R2 23.72
S3 22.37-R3 23.90

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