Silver Price Analysis: XAG/USD sees vulnerable, sustained weakness below $19.00 awaited

• Silver shows some resilience below the $19.00 mark and reverses the early dip to a multi-day low.
• The technical set-up still favours bearish traders and supports prospects for further near-term fall.
• A sustained strength beyond the $20.00 psychological mark is needed to negate the negative bias.

Silver reverses an intraday dip to sub-$19.00 levels, or a multi-day low and climbs to the top end of its daily trading range heading into the North American session. The XAG/USD pair is currently hovering around the $19.15-$19.20 region, still down over 0.20% for the day.

From a technical perspective, any subsequent move-up is likely to face resistance near the $19.30-$19.40 confluence support breakpoint. The said area comprises the 38.2% Fibonacci retracement level of the sharp downfall from the monthly peak and the 100-hour SMA, which should now act as a pivotal point for intraday traders.

A sustained strength beyond might trigger a short-covering move and allow the XAG/USD to reclaim the $20.00 psychological mark. The positive momentum could get extended towards an intermediate hurdle near the $20.50 area, above which bulls could target the $21.00 mark en route to the monthly peak, around the $21.25 region.

On the flip side, the $18.95-$18.90 zone coincides with the 23.6% Fibo. level. A convincing break below will be seen as a fresh trigger for bearish traders and expose the $18.00 mark, with some intermediate support near the $18.30-$18.25 region. The XAG/USD could eventually drop further to challenge the YTD low, around the $17.55 area.

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Silver Price Analysis: XAG/USD fades rebound from 10-DMA above $19.00

Silver price remains sidelined after bouncing off 10-DMA.

Bullish MACD signals, firmer RSI keeps buyers hopeful but upside remains elusive below the descending resistance line from June.

Multiple supports to test bears before the yearly low.

Silver price (XAG/USD) seesaw around $19.15-20 during early Friday morning in Europe, fading the early Asian session bounce off the 10-DMA.

The bright metal’s latest inaction could be linked to the inability to cross the 50-DMA hurdle, around $19.25 by the press time. Even so, the bullish MACD signals and firmer RSI (14), keep the XAG/USD bulls hopeful.

That said, a downward sloping resistance line from June, around $19.90, appears a tough nut to crack for the bulls.

Following that, the 100-DMA level surrounding $20.35 acts as the last defense for the XAG/USD bears before directing the price towards the previous monthly peak near $20.90 and then to the $21.00 threshold.

Alternatively, pullback moves may initially aim for the 10-DMA support level of $18.90 before directing sellers towards the multiple supports around $18.25 and $18.10.

In the case where silver sellers keep reins past $18.10, the $18.00 round figure and the yearly bottom near $17.55 will be in focus.

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