Silver Technical Insights: XAG/USD Targets $23.20
15 Nov 2023
XAG/USD is looking to surpass $23.20 as the Fed seems done with hiking interest rates.
- The silver price is set on reaching beyond $23.20, driven by reduced inflationary pressures in the US.
- The USD Index witnessed a notable decline amidst a risk-on sentiment.
- Silver’s strong recovery followed robust buying interest, particularly around the 61.8% Fibonacci retracement level at $21.86.
On Wednesday, silver (XAG/USD) prices experienced an increase, driven by a devalued U.S. dollar and declining bond yields. This surge was prompted by U.S. inflation data revealing a deceleration, sparking speculation about the Federal Reserve’s potential adjustments to future rate hikes. The data unveiled that U.S. consumer prices remained stagnant in October, representing the least substantial annual uptick in underlying inflation in the past two years.
The price of silver (XAG/USD) reached a weekly high of around $23.20, propelled by a faster-than-expected softening of inflation in the United States in October. The white metal gains strength amid optimism that the Federal Reserve (Fed) will refrain from additional interest rate hikes.
Silver prices climb on the back of a diminished U.S. dollar and declining bond yields. The deceleration in U.S. inflation fuels speculation about the Federal Reserve’s approach to rate hikes. The dollar’s decline enhances silver’s accessibility to global investors.
SILVER TECHNICAL ANALYSIS DAILY CHART:
Silver is currently trading within a down channel.
Silver is positioned above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a positive trend.
Immediate Resistance level: 23.45
Immediate support level: 22.71
HOW TO TRADE SILVER
After a significant decline, silver prices found support, reversed direction, and entered an upward channel. Presently, the silver price is approaching a crucial resistance level, and a breakthrough could lead to further upside potential.
TRADE SUGGESTION- STOP BUY– 23.64, TAKE PROFIT AT- 24.35, SL AT- 23.22.