XAG/USD is battling 6-week-old support overlooking $18.00
- Silver prices remain under pressure around the intraday low and have fallen for the second straight day.
- Bearish oscillators, reversal from 61.8% Fibonacci retracement suggests further downside for XAG/USD.
- 10-DMA reinforces $19.00 upside hurdle, 3 month old support challenges sellers.
Silver (XAG/USD) prices remain on the back foot around $18.30 as bears challenge key short-term support during Thursday’s Asian session. The bright metal is thus expanding on the previous day’s losses and is approaching the weekly low.
XAG/USD looks weak given the metal’s pullback moves from the 61.8% September-October Fibonacci retracement level, which joins bearish MACD signals and the bearish RSI (14) which is not oversold stay.
However, the RSI line is fast approaching the oversold territory and the prices are also near the strong support zone which includes several levels marked around $18.00 since early July.
Even if the price falls below $18.00, the yearly low near $17.55 could act as an additional downside filter for the precious metal.
As such, the Silver Bears have limited downside to cheer.
On the upside, the 10-DMA joins the 61.8% Fibonacci retracement level to highlight $19.00 as a strong short-term resistance.
After that, multiple hurdles near $19.15-$20 could test silver buyers before being steered towards the $20.00 line.
A case of XAG/USD remaining firmer above $20.00 will focus on the highs marked in August and earlier in the month near $20.90 and $21.25 respectively.
Silver: daily chart
Trend: Limited downside expected