Silver Price Analysis: XAG/USD dips amid strong US Dollar, warmer inflation

Updated Apr 28, 2024 05:28

■  Silver falls pulling back from a daily high of $27.73.

■  Technical analysis indicates the uptrend is intact with key support at the $27.05 level, marked by the 50% Fibonacci retracement.

■  If silver surpasses the $28.00 resistance, potential targets are $28.48 and possibly year highs near $29.76.

■  Conversely, breaking below $27.05 could lead to $26.41 and further declines.

Silver's price dropped 0.79% after hitting a daily high of $27.73, as another inflation report in the United States showed warmer-than-expected inflation. The grey metal failed to capitalize on the fall in US Treasury yields, courtesy of a stronger US Dollar. At the time of writing, the XAG/USD trades at $27.21.

XAG/USD Price Analysis: Technical outlook

Despite retracing, the XAG/USD uptrend is intact, with dips viewed as opportunities for buyers to keep Silver's bid. During the last four trading days, Silver sellers had remained unable to push prices below the 50% Fibonacci retracement at $27.05, of the Fib drawn from the swing low at $24.34 to the latest high at $29.76.

For a bullish resumption, once traders surpass the $28.00 figure, that would pave the way for further upside. The first resistance would be the 23.6% Fib retracement at $28.48, followed by the $29.00 mark. The next supply area would be the year-to-date (YTD) high at $29.76.

On the flip side, bears could find some relief if XAG/USD slides below the 50% Fib retracement at $27.05, followed by the 61.8% retracement at $26.41. A subsequent dip is seen below that level, exposing the confluence of the 50-day moving average (DMA) and the 78.6% Fib retracement at $25.50.

XAG/USD Price Action – Daily Chart


Today last price 27.24
Today Daily Change -0.19
Today Daily Change % -0.69
Today daily open 27.43
Daily SMA20 27.46
Daily SMA50 25.33
Daily SMA100 24.24
Daily SMA200 23.76
Previous Daily High 27.58
Previous Daily Low 26.98
Previous Weekly High 29.02
Previous Weekly Low 27.62
Previous Monthly High 25.77
Previous Monthly Low 22.51
Daily Fibonacci 38.2% 27.35
Daily Fibonacci 61.8% 27.21
Daily Pivot Point S1 27.08
Daily Pivot Point S2 26.74
Daily Pivot Point S3 26.49
Daily Pivot Point R1 27.67
Daily Pivot Point R2 27.92
Daily Pivot Point R3 28.27

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