Silver Xagusd Trades Ahead Of Fomc

Silver Xagusd Trades Ahead Of Fomc by Andrew Blumer last updated on August 16, 2023

Silver (XAG/USD) Trades Near $24.65 Ahead Of FOMC

A daily earlier, the Silver (XAG/USD) made a rebound from the lows of $24.30 but failed to capitalize on it and lost its momentum. At the same time, the bearish pressure on the white metal is also not that much, which has caused it to look for a fresh impetus.

For now, the white metal is trading near the $24.65 level after losing 0.15% of its value for the day. Looking ahead, the white metal will get its next direction from the FOMC meeting - A decision to move away from the current policy will be bullish for the silver, while sticking with the current policy will be bearish for the white metal.

All Eyes On FOMC Meeting

If we look at Silver's technical outlook, the recent break of the 50 SMA tells us that the dominant theme is bearish. However, the indicators on the daily and even the hourly chart are still in positive territory. So that's a factor that tells us that more caution is needed as the direction is still not clear.

In addition, the traders are also hesitant to go all in on silver and other assets as the high FOMC meeting is just around the corner and will likely invite some massive liquidity.

At the same time, the 50 SMA on the Silver's 4-hr chart is currently present at $24.85. That's the level that will prove to be a major hurdle for the silver bulls ahead of the $25.00 level. Any further upside move by the Silver bulls will remain capped near the $25.25 level.

On the other hand, the $24.30 is the weekly low which will act as a support for the silver traders. Any further bearish pressure will lead us to the $24.00 level followed by the $23.65 and then $23.60.

For now, any big moves in the silver metal are highly unlikely as some major events are lined up for the rest of the week.