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Below 19.50 USD, a Silver (XAG/USD) Recovery Remains Difficult

July 8, 2022


Talking Points:

  • XAG/USD Price increases bids to recoup losses at a two-year low.
  • Dojis during the past two days suggests a lack of consensus among traders, and an oversold relative strength index (RSI) points to a further rebound.
  • Early 2020 tops test the bears but five-month-old previous support protects immediate upside.

After exhibiting sluggish movements over the previous two days, XAG/USD regains its intraday high at 19.30 USD. Even so, throughout the Asian trading session today, the precious metal is still trading below the prior crucial support, which is now resistance.

It should be mentioned that the oversold RSI conditions point to a further rise in the price towards the February support line that has since turned into resistance around 19.50 USD.

The 20.00 USD round figure and the bearish moving average convergence divergence (MACD), however, could pose a threat to the pair’s potential upside.

It’s important to remember that the May low of 20.45 USD serves as the primary barrier that silver bulls must watch in order to regain control.

On the flip side, the highs reached in February 2020 and January 2020, which were at 18.95 USD and 18.85 USD, respectively, could pose a challenge to the XAG/USD bears.

If XAG/USD prices fall below 18.65 USDS, the late 2019 high around 18.33 USD and the peak of 18.39 USD from June 2020 could act as obstacles for the bears before leading them to the late 2020 bottom around 16.95 USD.

Overall, a number of Dojis and mixed oscillators reflect the confusion among XAG/USD traders ahead of the crucial US jobs report for June.

XAG/USD Daily Chart:


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