XAG/USD hangs near multi-week low, bears await a break below 61.8% Fibo.

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<li><strong>Silver remains under some selling pressure for the fourth straight day on Friday.</strong></li>
<li><strong>The technical setup favours bears and supports prospects for a further downfall.</strong></li>
<li><strong>A sustained strength back above the $24.00 mark might negate the negative bias.</strong></li>
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<p>Silver comes under some renewed selling pressure during the early European session on Friday and drops to over a three-week low in the last hour. The white metal currently trades around the $23.40 area, down for the fourth straight day, and seems vulnerable to prolonging its downward trajectory witnessed over the past two weeks or so.</p>
<p>The negative <a href="https://www.fxstreet.com/rates-charts/forecast">outlook</a> is reinforced by the fact that technical <a href="https://www.fxstreet.com/rates-charts/indicators">indicators</a> on the daily chart have been drifting lower and are still far from being in the oversold territory. Bearish traders, however, might still wait for a sustained break and acceptance below the $23.35 area, or the 61.8% <a href="https://www.fxstreet.com/technical-analysis/support-resistance/fibonacci">Fibonacci</a> retracement level of the June-July rally, before positioning for any further losses.</p>
<p>The XAG/USD might then accelerate the slide towards challenging the very important 200-day Simple Moving Average (SMA), currently pegged around the $23.00 mark. The downward trajectory could get extended and make silver vulnerable to retest the multi-month low, around the $22.15-$22.10 area touched in June, before eventually breaking below the $22.00 mark.</p>
<p>On the flip side, the 50% Fibo. level, around the $23.70 area, now seems to act as an immediate hurdle. Any subsequent move up is likely to attract fresh sellers and remain capped near the $24.00-$24.10 confluence support breakpoint, turned resistance. The said area comprises the 100-day SMA and the 38.2% Fibo. level, which should act as a pivotal point.</p>
<p>A sustained strength beyond might trigger a short-covering rally and lift the XAG/USD back towards the 23.6% Fibo. level, around $24.45-$24.50 supply zone. Some follow-through buying has the potential to lift Siver towards the $24.75 intermediate hurdle en route to the $25.00 psychological mark and the next relevant barrier near the $25.25 supply zone.</p>
<h2>Silver daily chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/image-638267295356869862.png" target="_blank" rel="noopener"><img decoding="async" alt="fxsoriginal" src="https://editorial.fxstreet.com/miscelaneous/image-638267295356869862.png" style="width: 650px; height: 314px;" /></a></p>
<p>Technical levels to watch</p>
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<br /><a href="https://www.fxstreet.com/news/silver-price-analysis-xag-usd-hangs-near-multi-week-low-bears-await-a-break-below-618-fibo-202308040706">Source link </a></p><p>The post <a href="https://forextraderhub.com/xag-usd-hangs-near-multi-week-low-bears-await-a-break-below-61-8-fibo.html">XAG/USD hangs near multi-week low, bears await a break below 61.8% Fibo.</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>