XAG / USD broke a bullish pennant, but the rally came at the 100-DMA. to falter
- Silver is up about 0.22% on lower US Treasury bond yields.
- The US dollar index is up 0.12%, holding at 96.00 but not weighing on XAG / USD.
- XAG / USD Price Prediction: The break of a bullish pennant has pushed silver to the confluence of the 50 and 100 DMA.
Silver (XAG / USD) rises on the second day of the week, trading above $ 23.00 for the first time in a month during the New York session. At the time of writing, XAG / USD is trading at $ 23.11, up 0.60%.
For the second straight day, precious metals climbed led by gold and silver as risk appetite and the US dollar improved towards the end of the year. The restrictive swing of the US Federal Reserve and the start of a faster bond taper in mid-January 2022 put any upward movements in silver under control, as Fed politicians now expect at least three rate hikes in the coming year.
The US dollar index, which measures the value of the greenback against a basket of its competitors, is up around 0.12% to trade at 96.20. In the bond market, the benchmark 10-year coupon fell one and a half basis points to 1.465%, providing tailwind for XAG / USD as real rates are nowhere and 10-year US TIPS at -1,083. lie %.
Silver broke the upside of a bullish pennant on the 1-hour chart during the night session, hit a daily high of around $ 23.41, then fell towards $ 23.09.
XAG / USD Price Prediction: Technical Outlook
Silver’s daily chart shows non-yielding metals trading with a neutral bearish bias. The rally in the night session was capped by the clash of the 50- and 100-day moving averages (DMAs) around the $ 23.33-45 range and at press time, the XAG bulls managed to get the price above the day’s high from December 27th to hold at $ 23.09.
On the flip side, the first resistance level from XAG / USD can be seen at the 100-DMA at $ 23.33, immediately followed by the 50-DMA at $ 23.43. Breaking this area would reveal the daily high of November 25th at $ 23.70.
On the flip side, the first level of support is likely to be the daily high of December 27th at USD 23.09. A break below that would expose $ 23.00, followed by the cycle low on December 24th at $ 22.59.