Published on Mar 27, 2023

Daily Analysis For Silver (XAG/USD) 27-03-2023

Sliver (XAG/USD) Analysis

Economic Events and Scenario for XAG/USD

Economic Events : -

GMT	Event	Impact	Currency
2:30	(China) Industrial Profits (YTD) YoY	Low	CNY
6:00	(Finland) Consumer Confidence	Low	EUR
6:00	(Finland) Business Confidence	Low	EUR
6:00	(Japan) Leading Economic Index	Low	JPY
6:00	(Japan) Coincident Index	Low	JPY
9:00	(Germany) Ifo Current Conditions	Low	EUR
9:00	(Germany) Ifo Business Climate	High	EUR
9:00	(Germany) Ifo Expectations	Low	EUR
9:00	(Euro Area) Loans to Companies YoY	Low	EUR
9:00	(Euro Area) M3 Money Supply YoY	Low	EUR
9:00	(Euro Area) Loans to Households YoY	Low	EUR
9:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
9:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
9:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
9:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
9:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
9:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
9:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
11:00	(United Kingdom) CBI Distributive Trades	Medium	GBP
11:00	(France) Jobseekers Total	Low	EUR
11:00	(France) Unemployment Benefit Claims	Medium	EUR
11:00	(Greece) Total Credit YoY	Low	EUR
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
15:30	(United States) Dallas Fed Manufacturing Index	Medium	USD
15:40	(Euro Area) ECB Elderson Speech	Medium	EUR
16:00	(Euro Area) ECB Schnabel Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
18:00	(United States) 2-Year Note Auction	Low	USD
18:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
22:00	(United States) Fed Jefferson Speech	Medium	USD

Today's Scenario: - Silver has experienced a significant surge in the past hour, rising from $23.16 to $23.52, reaching its highest level since early February. XAG/USD has gained 4%, and from the low on March 10, it has gained almost 20%. The price is now testing a significant technical area, and if it consolidates above $23.50, it could pave the way for further gains, even though technical indicators suggest that it is in an extreme overbought condition.

Buy Scenario: - On the upside direction, any attempts at a recovery are unlikely to materialize unless the XAG/USD stays above the previous support line, now acting as resistance around $23.50.

If the bright metal manages to clear this resistance level, it may face additional obstacles around $24.00 and $24.20 before testing the yearly high of around $24.65.

Overall, while there is a risk of further downside for the Silver price, the potential for a significant drop appears limited.Till we did not recommend buying Silver (XAG/USD).

Sell Scenario: - Silver's price (XAG/USD) has recorded its first daily loss in four, dropping to $23.15 during early Monday in Asia. The bright metal has been depressed after two consecutive weekly losses and Friday's downside break of a short-term key support line. The RSI (14) line's placement near the oversold territory also suggests potential for further downside.

As a result, the XAG/USD appears well-positioned to drop towards the 61.8% Fibonacci retracement level of its February-March downside, near $22.85. The 50% Fibonacci retracement and the 50-DMA, around $22.30-20, could pose a challenge for Silver bears afterward.

If XAG/USD drops below $22.20, it could be vulnerable to a drop towards the early-month swing high of around $23.20, while the 200-DMA support at $21.00 could limit further downside for the commodity. Till we do not advise selling silver (XAG/USD).

Support and Resistance Level: -