XAG/USD is treading water above $19.50
- Silver price recovery stalls in the $19.50 area.
- A weaker USD supports the precious metals recovery.
- XAG/USD has to clear a key resistance hurdle at $19.65/75.
Silver prices traded higher on Wednesday for the second straight day, with the white metal extending its recovery from Tuesday’s low of $18.80 to a two-week high of $1975 where it appears to have found a significant barrier of resistance.
USD weakness underpins precious metals recovery
XAG/USD was higher earlier on Wednesday, buoyed by broad-based US dollar weakness as investors begin to price in a slowdown in the Federal Reserve’s monetary tightening path.
However, the positive price action has stalled just below the $19.65/$75 area where the 100-day SMA crossed the 50% Fibonacci retracement level of the October 4-14 decline and the October 23 high .Reached September.
A successful break above this area would see the pair targeting the psychological $20.00 level (and the Fib level of 61.8% of the aforementioned decline) before reclaiming the highs of $20.85 on the 6th. and October 7 aims.
On the downside, the 50-day SMA at $19.00 is protecting the pair from further decline so far, with the next potential support area at $18.80 (low from Oct 25) ahead of the Oct 14 low on Oct 14. October lies.
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