XAG/USD bulls defend the $22.30, more downise on the horizon

• XAG/USD declined to a low of $22.30 but settled at $22.60.
• Indicators on the daily chart near oversold conditions.
• Fundamentals favour more bearish movements.

In Thursday’s session, the Silver spot price XAG/USD declined but defended the critical resistance at $22.30 and closed the session at $22.60. However, the bearish momentum persists, and fundamentals back the sellers, limiting the grey metal’s upside potential.

On the daily chart, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain in negative territory, with the RSI below its midline and showing a southward slope near the 30 threshold. The MACD is also displaying red bars, indicating a strengthening bearish momentum. Additionally, the pair is below the 20,100,200-day Simple Moving Average (SMA), indicating that the bears are in command of the broader picture. However, if the sellers fail to break the $22.30 mark, the price may enter into a period of consolidation as it has already declined by more than 7% in September.

Moreover, fundamentals, including stronger USD and US Treasury yields remaining high, may continue boosting the bearish momentum and act as a tailwind for the bears to retest the $22.30 level.

Support levels: $22.30, $22.15, $22.00. 

Resistance levels: $22.90, $23.00, $23.30.

XAG/USD Daily Chart