XAG/USD hangs near three-month low, bears flirt with 200-day SMA

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<li><strong>Silver remains depressed for the fourth straight day and languishes near a three-month low.</strong></li>
<li><strong>The setup favours bearish traders and supports prospects for a breakthrough the 200-DMA.</strong></li>
<li><strong>Any attempted recovery could attract fresh sellers near the $23.00 mark and remains capped.</strong></li>
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<p><a href="https://www.fxstreet.com/rates-charts/xagusd">Silver</a> enters a bearish consolidation phase on Thursday and oscillates in a narrow trading band around the $22.50-$22.60 area or a three-month low touched the previous day. The white metal, however, manages to hold its neck just above the very important 200-day Simple Moving Average (SMA) support, which should act as a key pivotal point for short-term traders.</p>
<p>Against the backdrop of the recent failure near the 50-day SMA, bearish oscillators on the daily chart support prospects for an eventual breakdown through the technically significant moving average. Some follow-through selling below the $22.25 area, representing the 61.8% Fibonacci retracement level of the March-May rally, will be seen as a fresh trigger for bearish traders and pave the way for further losses.</p>
<p>The XAG/USD might then turn vulnerable to weaken further below the $22.00 mark and accelerate the downfall towards testing the $21.70-$21.65 support zone. The downward trajectory could get extended towards the $21.25 intermediate support en route to the $21.00 round figure and the next relevant support near the $20.50 area. Bears might eventually target the YTD low, levels just below the $20.00 psychological mark.</p>
<p>On the flip side, any meaningful recovery attempt might now confront stiff resistance near the $23.00 mark, which coincides with the 50% Fibo. level. That said, a sustained strength beyond could trigger a short-covering rally and lift the XAG/USD to the $23.30-$23.35 intermediate hurdle en route to 38.2% Fibo. level, around the $23.70-$23.75 zone. The latter should act as a key barrier and cap any further gains.</p>
<h2>Silver daily chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/image-638230152658541623.png" target="_blank" rel="noopener"><img decoding="async" alt="fxsoriginal" src="https://editorial.fxstreet.com/miscelaneous/image-638230152658541623.png" style="width: 650px; height: 314px;" /></a></p>
<h3>Key levels to watch</h3>
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<br /><a href="https://www.fxstreet.com/news/silver-price-analysis-xag-usd-hangs-near-three-month-low-bears-flirt-with-200-day-sma-202306220722">Source link </a></p><p>The post <a href="https://forextraderhub.com/xag-usd-hangs-near-three-month-low-bears-flirt-with-200-day-sma.html">XAG/USD hangs near three-month low, bears flirt with 200-day SMA</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>