Silver price (XAGUSD) pair early gains after hit the one week high at $17.58 during the Asian trading session. Worries over the coronavirus outbreak and the severe economic impact on global economy has shifted investors attention to safe-haven assets. Just to make things worse a crude oil price war between Russia and Saudi Arabia weigh on investors sentiment and the crude oil price tumbled over 20% down to $33.41.
In early European session, sellers stepped in and pushed the silver price down to 16.54, cancelling the bullish momentum formed during the Asian session.
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Silver Price Technical Outlook
The silver price after a strong start in the week met the 100-day moving average resistance at 17.53 and retreatd below the $17 mark. The technical outlook for silver is bearish as the price rejected at the 100-day moving average while as of writing is trading also below the 200-day moving average.
On the downside, first support for the silver price will be met at $16.54 the daily low. Below that level, more bids might emerge at 16.37 the low from February 28. Next support zone to watch on the downside stands at $16.18 the March 2nd lows.
On the upside, the first hurdle for silver will be met at 17.58 the daily top. Extra selling pressure for the silver price will be met at 17.80 the 50-day moving average. In case of a break higher, the next resistance level stands at 18.13 the high from February 27th.
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