Silver Price Analysis: XAG/USD downside towards $20.10 appears more impulsive

NEW YORK (March 7) Silver price (XAG/USD) stays on the bear’s radar, despite an early-day attempt to tease buyers, as the metal drops to $21.05 amid the initial European session on Tuesday. In doing so, the bullion defends the week-start pullback from the highest levels since February 24.

That said, the bright metal portrays a one-week-old rising wedge bearish chart pattern. The same join the bearish MACD signals to strengthen the downside bias.

However, a clear break of $21.00 becomes necessary to witness a downtrend towards a one-month-old previous resistance line, near $20.10 by the press time.

It should be observed that the latest swing low near $20.40 and the $20.00 round figure appear as the extra filters toward the south.

On the flip side, a downward-sloping resistance line from February 09, close to $21.20 at the latest, restricts the XAU/USD’s immediate recovery ahead of the stated wedge’s top line, near 21.40 by the press time.

Even if the Silver price crosses the $21.40 hurdle, the late February swing high near the $22.00 round figure could act as the validation point for the metal’s run-up toward the previous monthly high surrounding $24.65.

Overall, the Silver price is likely to remain pressured as traders await the key weekly event, namely Federal Reserve (Fed) Chairman Jerome Powell’s Testimony.

FXStreet