XAG/USD: silver remains under pressure
Current trend
Silver prices are falling during the Asian session, correcting after yesterday's attempt to grow. The instrument is now testing the level 24.20 for a breakdown and waiting for new signals.
The situation on the market is changing slightly since there are no prerequisites for the completion of a special military operation initiated by the Russian authorities on the territory of Ukraine. Moreover, the economic outlook is only worsening as more sanctions are imposed on the Russian economy. In particular, yesterday, the EU announced its intention to expand the list of goods banned from imports from Russia, but analysts report that this package of sanctions has not been agreed upon so far. The project involves a ban on importing coal and some agricultural products, in particular, potash fertilizers. Certain foodstuffs may also be subject to restrictions. According to experts, sanctions could cost the economy about 9B euros a year.
The pressure on the instrument's position is exerted by the growth in the yield of US Treasury bonds. The minutes of the US Federal Reserve's Open Market Committee (FOMC) published yesterday reflected the regulator's readiness to accelerate the tightening of monetary policy, including through the launch of a quantitative tightening program. Similar sentiments can be traced in the speeches official representatives of the regulator, for example, Lael Brainard, who is known for her rather reserved position.
Support and resistance
On the daily chart, Bollinger Bands are steadily declining. The price range expands, letting the "bears" renew local lows. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics but is approaching the level of 20, which indicates that silver may become oversold in the ultra-short term.
Resistance levels: 24.42, 24.67, 25.00, 25.35.
Support levels: 24.00, 23.60, 23.32, 23.00.
Silver prices are falling during the Asian session, correcting after yesterday's attempt to grow. The instrument is now testing the level 24.20 for a breakdown and waiting for new signals.
The situation on the market is changing slightly since there are no prerequisites for the completion of a special military operation initiated by the Russian authorities on the territory of Ukraine. Moreover, the economic outlook is only worsening as more sanctions are imposed on the Russian economy. In particular, yesterday, the EU announced its intention to expand the list of goods banned from imports from Russia, but analysts report that this package of sanctions has not been agreed upon so far. The project involves a ban on importing coal and some agricultural products, in particular, potash fertilizers. Certain foodstuffs may also be subject to restrictions. According to experts, sanctions could cost the economy about 9B euros a year.
The pressure on the instrument's position is exerted by the growth in the yield of US Treasury bonds. The minutes of the US Federal Reserve's Open Market Committee (FOMC) published yesterday reflected the regulator's readiness to accelerate the tightening of monetary policy, including through the launch of a quantitative tightening program. Similar sentiments can be traced in the speeches official representatives of the regulator, for example, Lael Brainard, who is known for her rather reserved position.
Support and resistance
On the daily chart, Bollinger Bands are steadily declining. The price range expands, letting the "bears" renew local lows. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics but is approaching the level of 20, which indicates that silver may become oversold in the ultra-short term.
Resistance levels: 24.42, 24.67, 25.00, 25.35.
Support levels: 24.00, 23.60, 23.32, 23.00.
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