Silver Price Analysis: XAG/USD drops towards $22.20–10 support zone on US inflation day
- Silver Price remains pressured at one-month low after three-day losing streak.
- Bearish MACD signals, clear downside break of previous support line, 200-DMA favors XAG/USD sellers.
- Nine-month-old horizontal support area appears a tough nut to crack for Silver sellers.
- XAG/USD recovery needs validation from $23.30 and US CPI for July.
Silver Price (XAG/USD) holds lower grounds near $22.70 as bears await the US inflation data on early Thursday. In doing so, the XAG/USD stays depressed at the lowest level in a month after declining in the last three consecutive days.
It’s worth noting that the bearish MACD signals keep the Silver sellers hopeful as the commodity defends the early-week break of the 200-DMA and an upward-sloping support line from early March, now immediate resistance near $23.10.
However, the RSI (14) line is near the oversold territory, suggesting limited downside room for the XAG/USD, which in turn highlights a horizontal area comprising multiple levels marked since November 2022 around $22.20–10. Also acting as a downside filter is the $22.00 round figure.
In a case where the Silver Price drops below $22.00, the early March swing high of around $21.30 will be in the spotlight.
Alternatively, an upside break of the support-turned-resistance line of around $23.10 isn’t an open invitation to the Silver buyers as the 200-DMA hurdle surrounding $23.30 also challenges the bright metal’s upside momentum.
Following that, the tops marked in June and July, respectively around $24.55 and $25.25 should lure the XAG/USD bulls.
Silver Price: Daily chart
Trend: Further downside expected