Silver Price Analysis: 21-DMA defends XAG/USD bulls above $24.00 despite US rating news inflicted pullback
- Silver Price struggles to defend corrective bounce off 21-DMA as risk aversion prods buyers.
- US credit rating cut weighs on sentiment even as White House, US banks rush to tame fears.
- Oscillators tease XAG/USD bears but $23.10 appears a tough nut to crack for them to retake control.
- Silver Price recovery aims for three-month-old descending resistance line.
Silver Price (XAG/USD) grinds near intraday high of around $24.40 as it struggles to keep the bounce off 21-DMA during early Wednesday. That said, the bright metal’s latest retreat could be linked to the risk-off mood due to the US credit rating cut by the global rating agency Fitch Ratings.
Also read: Fitch downgrades US government’s AAA credit rating to AA+, US Dollar retreats
It’s worth noting that the XAG/USD snapped two-day winning streak the previous day but failed to break the 21-DMA.
Even so, the bearish MACD signals and steady RSI, as well as the sour sentiment, challenge the Silver buyers as they brace for the $25.00 round figure.
Following that, a downward-sloping resistance line from early May, close to $25.10, will test the XAG/USD bulls before giving them control.
On the contrary, a daily closing beneath the 21-DMA level of around $24.20 needs validation from the $24.00 round figure to drag the commodity price toward the early July swing high of near $23.30.
However, a convergence of the 200-DMA and a five-month-old rising trend line, close to $23.10, will be a tough challenge for the Silver bears to conquer to keep the control afterward.
Silver Price: Daily chart
Trend: Further weakness expected