- Silver (XAG/USD) surges higher in the New York session after hitting a weekly low of $18.79.
- XAG/USD remains neutral to bearish, although a break above the 100-DMA will pave the way to $20.00.
- In the short term, XAG/USD could clear the daily pivot of R1 at $19.58, bringing the 100-day EMA into play.
Silver prices reclaimed the 50- and 20-day exponential moving averages (EMAs) on Tuesday amid broad US dollar weakness as risk-on assets in the US surge Bind Rally. As a result, US Treasury yields are falling, a tailwind for the white metal. At the time of writing, XAG/USD is trading at $19.37, which is 0.77% higher than its opening price.
XAG/USD Price Prediction: Technical Outlook
The daily XAG/USD chart represents silver as neutral to bearish, although it has reclaimed the 20- and 50-day EMAs. For XAG/USD buyers to further strengthen the case for a move to neutral, they need to reclaim the 100-day EMA at $19.61, which could lead XAG/USD to rally to $20.00 a troy ounce before testing the 200-day EMA at $21.65. Additionally, the Relative Strength Index (RSI) in the bullish zone with a minimal bullish slope suggests that prices could target higher, opening the door for a test of the 100-day EMA.
In the short term, XAG/USD is neutral to bullish as indicated by the hourly chart, with prices floating around the daily pivot level at $19.30. The Relative Strength Index (RSI) is in the bullish territory at around 58.64, albeit with no direction. Therefore, XAG/USD could consolidate in the absence of a catalyst.
On the upside, initial resistance would be the daily R1 pivot at $19.58 followed by the 24th October high at $19.67 ahead of the R2 pivot level at $19.95. On the upside, initial XAG/USD support would be the confluence of the 50 and 20 EMAs at $19.23 and $19.18 respectively, followed by the S1 daily pivot point at $18.94. Dollar. The break below will expose the 100 and 200 EMAs, at $18.90 and $18.78 respectively, ahead of the S2 pivot level at $18.65.
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