Silver Price Target: Silver prices are trading higher for the second consecutive day on Wednesday, with the white metal (Chandi) extending its recovery from the $18.75 low on Tuesday to two-week highs at $19.75, where it seems to have found a significant resistance hurdle.
- Silver prices’ recovery stalls at $19.55 area.
- A weaker USD underpins the precious metals recovery.
- Silver needs to breach an important resistance hurdle at $20.
USD weakness underpinning precious metals’ recovery
The Silver (Chandi) appreciated earlier on Wednesday, fueled by a broad-based US dollar weakness, as the investors start to price in a slowdown on the Federal Reserve’s monetary tightening path.
The positive price action, however, has stalled right below the $19.65/75 area, where the 100-day SMA meets the 50% Fibonacci retracement level of the October 4-14 decline and the September 23 high.
A successful break above that area would put the pair aiming for the $20.00 psychological level (and the 61,8% Fib level of the aforementioned decline) before aiming at $20.85 October 6 and 7 highs.
On the downside, the 50-day SMA, at $19.00 is defending the pair from further decline, so far, with the next potential support area at $18.75 (Oct 25 low) ahead of the October 14 low at Oct 14.